Privatelyheld Satellite Technology Management Inc is to reverse into Bristol Research Corp, Costa Mesa, California, with the directors and management of Satellite Technology running the show. Bristol Research manufactures computer boards and systems for the OEM market, and Satellite Technology is a maker of communications equipment for networking systems. The merged company plans to use its complementary expertise in communications and computers to develop systems and equipment for the computer networking market. Bristol plans to combine the merger with a new public issue of shares to support the product development of the combined firms, and has commissioned its underwriter to put together a package to raise between $6m and $8m. Bristol says that Satellite Technology has established itself as a technology leader in the VSAT very small aperture satellite communications business, noting that it has been chosen by the US National Aeronautics & Space Administration to provide technology basic to one of NASA’s future communications programmes. Satellite Technology has also just concluded a $3m technical licence agreement with ANT, the telecommunications subsidiary of West German motor components giant Robert Bosch GmbH – ANT was the supplier of the recently launched European Copernicus satellite. As part of the transaction with Satellite Technology, Bristol directors and other inside shareholders have agreed to return to treasury nearly 80% of their shares in order to minimise potential dilution and preserve value to the public shareholders. In the merger, Satellite Technology holders will receive 3m units (two shares and one warrant) of Bristol stock.
