Under the terms of the deal, Ntera will be merged into Dallas, Texas-based WorldQuest, which will act as the surviving company. However, Ntera stockholders will receive 80% of the common stock of the combined company, with the remaining 20% going to WorldQuest stockholders. Financial details of the deal were not disclosed.
Both boards of directors have approved the merger, which is subject to the usual stockholder approval. However, because the merger agreement calls for the combined company to relocate its executive headquarters to Miami, WorldQuest chief executive R Stephen Polley decided to resign his executive position and seat on the board.
It is expected that the combined company will generate more than $150m in annual revenue. WorldQuest had revenue of $11.5m in 2002, and for the first nine months of 2003 revenue totaled $7.6m.
WorldQuest also agreed to extend a $2m bridge loan to Ntera for network expansion.
This article is based on material originally published by ComputerWire
