StarLIMS Technologies Ltd. (Nasdaq:LIMS); TASE: LIMS) shareholders will meet in three weeks to approve the sale of the company to Abbot Laboratories Inc. (NYSE: LBT) for $123 million. Meanwhile, they can peruse the 150-page document that StarLIMS sent to the US Securities and Exchange Commission (SEC) on the sale on Friday.
StarLIMS' controlling shareholders will not be the only ones to profit from the deal. The report discloses that its financial advisors, Tamir Fishman Investment House Ltd. and its strategic partner Royal Bank of Canada Inc. (NYSE; TSX: RY) (RBC), received $250,000. The company also paid the banks $30,000 for travel expenses and legal fees.
StarLIMS, founded by CEO Itschak Friedman and his brother CFO Chaim Friedman, develops laboratory information management systems (LIMS). Abbott, a manufacturer of pharmaceuticals and healthcare products, will integrate the company into its diagnostics division.
Itschak and Chaim Friedman will receive $21.6 million and $8.1 million for their holdings in the company, respectively. StarLIMS added that, subject to certain conditions, if the acquisition is not carried out, StarLIMS will pay Abbott a fine of $3.5 million, the amount of the standard fine of 3% of the transaction.
StarLIMS' share closed at $13.93 on Nasdaq on Friday, giving a market cap of $117 million. The share was unchanged on the TASE today at NIS 52.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010
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