Safeguard Scientifics Announces That McKesson Will Acquire Portico Systems for $90 Million

Safeguard Scientifics, Inc. SFE today announced that technology partner company Portico Systems, Inc. has signed a definitive agreement to be acquired by McKesson MCK. McKesson has agreed to pay $90 million, in cash, for Portico, of which $5 million will be contingent upon the achievement of performance milestones. Safeguard expects to receive aggregate cash proceeds of approximately $38 million related to its equity interest in Portico, of which $2 million will be contingent upon performance milestones, representing a 4x cash-on-cash return. In addition, Safeguard will be repaid all amounts owed under its $5 million mezzanine debt facility with Portico. The consummation of the transaction is subject to standard conditions to closing, including applicable antitrust clearances and is expected to close in the third quarter of 2011.