Tut to Buy Videotele.com
The merger, which was approved by the boards of Tektronix and Tut Systems, is expected to close in November 2002. Under the terms of the agreement, Tektronix will receive 19.9% of Tut Systems’ common stock and a five-year note as total consideration for VideoTele.Com. The total transaction value is estimated to be approximately $7 million. The value of the common stock consideration will be determined by computing the average closing price of Tut Systems stock from October 28, 2002 through November 29, 2002, a period of 32 days. The value of the note shall be the difference between the final transaction value and the value of the common stock, as determined by the average closing price.
For the fiscal year ended May 31, 2002, VideoTele.com had unaudited revenues of approximately $24.7 million, and for the fiscal quarter ended August 31, 2002, unaudited revenues were approximately $4.9 million.
Tut Systems Inc.