Vancouver-based Intrinsyc Software International Inc. (TSX:ICS) has announced an agreement to buy some of the assets and operations of Destinator Technologies Inc. for $8.5 million cash and 11 million Intrinsyc shares.
Under the deal, Intrinsyc will acquire development centres in China and Israel, wireless software products and 17 patents.
The wireless software company will not take on any of Destinator's financial liabilities apart from its development centres.
The deal, which is subject to higher bids solicited in an auction, is expected to close in July. Intrinsyc will receive a break fee equal to 3% of the purchase price if the deal falls through.
Destinator, headquartered in Toronto, develops, markets and sells GPS-related software. The company is being restructured.
Intrinsyc's share price range during the past week: between $0.56 and $0.69; 52-week high: $1.30; 52-week low: $0.39.