Tioga Reports Transaction Closing with STM
Tioga Technologies Ltd. (Tel Aviv, Israel) announced the closing of its assets transaction with STMicroelectronics NV (STM, Geneva, Switzerland), following the exercise by STM, on January 15, 2003, of its call option to acquire all of Tioga's business assets.
The total cash consideration of the deal is $12 million. Tioga will receive an immediate cash payment of $10.2 million, and the remaining $1.8 million will be placed in an escrow account to secure Tioga's representations under the Asset Purchase Agreement. It is expected that the remaining funds will be released by June 30, 2003. Upon receipt of the total amount, the net cash available to Tioga, following the payment of all outstanding liabilities, will be between $11 million and $12 million.