Mergers & Acquisitions

Mergers & Acquisitions

August 08, 2011

DPAC to Sell Assets to Subsidiary of B&B Electronics

DPAC Technologies Corp. (News - Alert) recently announced the deal to sell all of its assets to a subsidiary of B&B electronics for $10.5 million pending final working capital adjustments. This sale will involve all of the DPAC assets. This deal was unanimously approved by DPAC’s Board of Directors and by a special independent committee of DPAC’s directors.

All the proceeds are proposed to be liquidated and distributed to common shareholders who are not directors, officers, or any other majority shareholder in DPAC. These distributions were possible after all the parties involved in thr allocation agreement agreed to receive lower payments under the terms of DPAC’s organizational documents and financing agreements.

Quatech, the company that’s going to acquire all the assets of DPAC, is a global leader in Ethernet, Wi-Fi, USB and serial device networking and connectivity solutions in wireless and traditionally wired industrial environments. After the acquisition, Quatech will be a subsidiary of B&B Electronics.

In a release, Steve Runkel, president and CEO of DPAC said, “We believe this transaction creates value for DPAC’s shareholders and are excited about the opportunity this creates for Quatech’s customers.”

Various third party consents must be acquired before this deal is closed. On August 3, 2011, the majority stakeholders, comprising of about 83.9 percent, approved the transaction by entering into a voting agreement with B&B Electronics. The Asset Purchase Agreement was signed and DPAC will file a Current Report on Form 8-K on the definitive agreements. DPAC will file a preliminary information statement on August 5, 2011 with the SEC (News - Alert). This acquisition will close by the fall of 2011.

Quatech is a high-performance connectivity solutions and device networking company. Its products include industrial-grade embedded radios, modules, boards and external device servers, machine-to-machine communications via secure 802.11 wireless or traditional wired networks. Quatech’s serial adapters provide port expansion and secure connectivity for local and mobile connections.  B&B Electronics manufactures data communications products for commercial and industrial applications. B&B is the one-stop-source to solve any data communication problem and data communication products.

To find out more information about B&B Electronics, please visit

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

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