Digital Angel to Acquire OuterLink
Digital Angel [Amex: DOC], a South St. Paul, Minn.-based supplier of GPS-based and wireless tracking devices, has acquired OuterLink, a Concord, Mass.-based producer of satellite data systems, in a stock swap deal worth a minimum of $16 million. The transaction involves the issuance of a zero coupon preferred stock instrument that is convertible into four million shares of Digital Angel’s common shares when the price of the common stock reaches $4 or more for 10 consecutive trading days. Digital Angel’s stock was trading at $2.36 per share at close of trading Friday. As part of the transaction, Van Chu, who was CEO of OuterLink, becomes the new CEO of Digital Angel.