APEX, N.C.-SmartLink Development L.P. said it signed a letter of intent with King Communications International Ltd., which would combine the businesses of the two companies concurrent with a private financing to raise as much as $10 million.
According to the letter of intent, King would sell its two subsidiaries-King Communications U.S.A. Inc. and King Communications Australasia Pty. Ltd.-to a U.S. reporting shell company, of which SmartLink would be a wholly owned subsidiary.
The companies said they expect definitive agreements to be signed within 45 days and the combination and offering to occur 60 to 90 days afterward.
The companies’ combined product lines will emphasize APCO Project 25, mobile data and two-way radio communications, said the companies. Together, King and SmartLink products provide seamless voice and data transmission for analog systems and will be capable of migrating to new APCO Project 25 digital systems.
The letter of intent is subject to consummation of the private placement offering, approval of King shareholders and certain regulatory approvals.
