CIMdata PLM Industry Summary Online Archive
21 November 2005
Acquisitions
netGuru Inc. Completes Sale of REI Business; Board to Recommend Use of Proceeds, Business Plan
netGuru, Inc. announced the completion of the sale of the assets and business of netGuru's Research Engineers (REI) division to privately held Bentley Systems, Inc. for $23.5 million.
The Company expects to realize approximately $21.9 million in net proceeds, of which $2.5 will be reserved for taxes and contractual reserves, $3.4 million will be used to repay long-term debt, and approximately $16.0 million will be used for general corporate purposes.
netGuru Chairman and Chief Executive Amrit Das commented: "After transaction costs, taxes, repayments of debt, and establishing contractual reserves, we anticipate adding approximately $16.0 million to the Company's cash position.
"netGuru's board of directors and management are evaluating alternatives for using these funds as well as strategies for the Company," Das continued. "We are discussing the possibilities and expect to announce what netGuru's board of directors recommends as the best direction for shareholders and the Company."
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