Digital Angel announced that it has entered into a definitive agreement with Allflex USA Inc. to sell its animal identification business, Destron Fearing Corp., for a purchase price of $25 million.
The deal is subject to the satisfaction of customary closing conditions, including approval by the holders of a majority of the outstanding shares of Digital Angel Corporation.
Closing adjustments, payment of debt and accrued liabilities, escrowed funds and the value of assumed liabilities will reduce the proceeds received from this transaction.
“It was determined that selling Destron Fearing was the best solution to maximize the value of the business for Digital Angel’s stockholders and provide the best opportunity for Destron Fearing employees, partners, and customers,” said Joe Grillo, CEO at Digital Angel Corporation.
Additional information will be available in Form 8-K that Digital Angel will file with the Securities and Exchange Commission within four business days.
A stockholder meeting and vote is also expected to be scheduled in June 2011.