Hollysys Buys Concord Corporation Pte For $43.2M

H ollysys Automation Technologies, Ltd. HOLI announced today that it signed a stock purchase agreement to acquire 100% ownership of Concord Corporation Pte Ltd. and its group of companies, a Singapore headquartered electrification related service provider to rail and industrial industrials in South-East Asia and the Middle East. The total consideration for the acquisition was a combination of cash and stock, equivalent to US$43.2 million approximately, with a two-year incentive share program for CCPL management team if CCPL meets certain performance targets. Pursuant to the stock purchase agreement, Hollysys shall pay/issue a fully refundable deposit of 20.75 million Singaporean dollars at SPA signing, and 20.75 million Singaporean dollars and approximately 1 million shares of Hollysys common stock at the closing. The CCPL management is entitled to approximately 0.75 million shares of Hollysys common stock in each of the next two years, if Concord's US-GAAP audited net income equals or exceeds US $ 10 million and US$ 11.5 million for Hollysys' fiscal year of 2012 and 2013 respectively.