Arel Communications and Software, a provider of voice, video and web solutions for conferencing, plans to go private.
Areal (Nasdaq: ARLC) said Monday morning that its audit committee had approved the proposal to take the firm private at the cost of $1.50 per share. Arel shares closed at $1.06 on Friday. There are 13.2 million shares outstanding, making the value of the deal worth some $20 million.
The move is being backed by Cetus Corp., which is controlled by Clayton Mathile. He also is the largest shareholder of Arel, according to the company.
“The proposed plan would entail the repurchase of Arel’s shares by the Company at a price of $1.50 per share and that Mr. Clayton Mathile would remain a shareholder of Arel,” Arel said in a statement. “Cetus Corp. has agreed in principle, subject to reaching definitive terms, to provide the Company with the funding to carry out the proposed plan and for its future operating needs.”
If the deal is approved by Arel’s board of directors, Arel said the number of shareholders would be reduced to fewer than 300.
Arel reported a lost of $5.6 million in 2004.
Arel: www.arelcom.com
