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Print ArticleOMAX has announced the settlement of the outstanding patent litigation with Flow Corp., along with the cessation of merger negotiations with the company.
“Due to the risks and difficulties of obtaining financing inherent in today’s capital markets, Flow elected to abandon the proposed merger between our companies,” says Dr. John Cheung, CEO of OMAX. “While we still believe the merger could have provided significant benefits for both companies, OMAX was unwilling to further modify the terms of the merger agreement.”
In consideration for Flow’s termination of the merger and the patent settlement, OMAX will receive $25 million in cash and $10 million in notes maturing in four years. A cross-licensing agreement has been reached for the patents involved in the litigation.
