CareDecision Corp. (OTCBB:CDED), today announced that it has signed an Agreement to Merge with MDU Services Inc., a Texas-based provider of private digital utility services to multiple tenant residential and business building sites, hotels/motels and universities. The companies anticipate that the Definitive Agreement and Plan of Merger for the estimated $4.5 million transaction, after a diligence period, is expected to be approximately 45 days.
This acquisition will furnish CareDecision with a significant asset base, a synergistic business entity, a wealth of existing implementable contracts, a skilled and knowledgeable management team, and domestic and European venture partners.
Robert Cox, Chairman of CareDecision, stated, “It is gratifying to be able to communicate to our shareholders a merger of this magnitude. MDU Services, Inc. is a private company that boasts a considerable asset base and existing contracts capable of generating immediate revenues. Their dynamic technologies and their target markets are compatible, if not identical, to our own ResidenceWare products. The experience, intelligence, and vitality of their management will greatly enhance our effectiveness and enable our accelerated access and penetration into our focussed markets. This acquisition will increase the market visibility of our exciting ResidenceWare product line and will enable its more rapid installation and expand its user utility.
Howard Gunn, President and CEO of MDU Services commented, “The coming merger with CareDecision is a perfect marriage of market opportunity and economic value. CareDecision`s demonstrated leadership dynamics, its rich technology base, its deeply experienced and highly skilled technical staff, and the extraordinary promise of its ResidenceWare products compels this transaction. We were searching for a secure wireless `hotspot` human interface to our Intel/Microsoft architecture, while they were looking for a secure bridge to integrate their Microsoft Windows CE traffic with the idle facilities left over from the telecom and dot.com implosion. Our Board, our management team and our European partners have all concluded that the most obvious course to maximization of shareholders` value and equity is through the conclusion of this proposed transaction.”
Mr. Cox concluded, “MDU contributes the additional bonus of furnishing a number of executed contracts that can readily be fulfilled with our ResidenceWare products and systems. This is not a merger of two separate companies but more a blending of two entities that are inherently synergistic in technology, markets and objectives. I am excited about the prospects that this proposition represents to our company, customers and, most of all, our shareholders”.
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