Editek Inc. (ASE:EDI) announced that it has signed a letter ofintent to merge with Princeton Diagnostic Laboratories ofAmerica (PDLA).
Editek will acquire PDLA through an exchange of stock. PDLAwill be valued at $1.45 per share of PDLA common stock.Editek will be valued at the lesser of $5.75 per share or theaverage closing price of its stock over the 10 trading days fromAug. 13 to Aug. 26.
PDLA (ASE:PDA) operates a National Institute of Drug Abusecertified laboratory in South Plainfield, N.J., that has currentannual revenues of more than $5 million. Editek of Burlington,N.C., and PDLA had combined revenues of more than $8 millionfor 1992.
According to James Skinner, president and chief executiveofficer of Editek, "The acquisition of PDLA is a good strategicmove for Editek since so much of Editek's current developmentand marketing efforts are already focused on drugs of abuse.The consolidation of the two companies will create synergy inmarketing comprehensive on-site and laboratory testingprograms to a common customer base.
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