Nematron plans to Acquire A-OK Controls

Nematron Corporation and A-OK Controls Engineering, Inc. announced that they have signed a letter of intent for Nematron to acquire A-OK Controls.

Nematron Corporation and A-OK Controls Engineering, Inc.

announced that they have signed a letter of intent for Nematron to acquire A-OK Controls.

Nematron, headquartered in Ann Arbor, Michigan, is a leading designer and manufacturer of solutions for PC-based machine control.

A-OK Controls, a profitable, privately held company based in Auburn Hills, Michigan, is a respected provider of control system integration services with extensive automotive industry experience.

The transaction is expected to have a positive impact on earnings and expand the sales channel for Nematron's PC-based control solutions.

A-OK Controls' revenues for 1999 exceeded $10 million.

Nematron's President Matt Galvez said, "This acquisition would support Nematron's strategic direction of providing complete solutions to our vertical-market customers.

These solutions must include not only the highest quality products, but also the engineering expertise to help our customers realize the benefits of PC-based control.

After the acquisition, program solutions provided by Nematron would be able to include support of Nematron PC-based control products throughout the lifetime of an installation.

A-OK Controls has proven capabilities in providing that support." Management expects that the combination of Nematron and A-OK Controls would enable Nematron to garner a larger share of major programs in which it participates, because the Company would then have extensive installation and post-installation support capabilities.

A-OK Controls would continue to provide integration services for systems made by other major control suppliers as well.

A-OK Controls President Ronald Causley commented, "The combination of A-OK Controls' talented engineering staff with Nematron's advanced technology would be very positive for manufacturers and OEMs looking to implement best-in-class automation solutions.

I believe that this dynamic combination is another step forward in populating the factory floor with superior technology.

We are excited to be joining forces with Nematron." The proposed transaction is subject to the completion of due diligence, the execution of a definitive purchase agreement and certain other conditions.

It is anticipated that the transaction will be completed in the second quarter of this year.

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