10/29/2004 — LoJack Corporation (NASDAQ: LOJN) announced today that it has completed the acquisition of Boomerang Tracking Inc., Montreal, Canada. The transaction became effective upon the favorable ruling of the Superior Court of Quebec, which approved the terms of the acquisition earlier today. Boomerang will operate as a wholly owned subsidiary of LoJack Corporation.
Boomerang shareholders had the choice of receiving as consideration for each Boomerang share: LoJack common stock per the agreed to exchange ratio; shares in a Canadian subsidiary of LoJack that are exchangeable into shares of LoJack common stock on a one-to-one basis per the agreed exchange ratio; CAD $2.95 in cash; or a combination of the above. The exchange ratio is 0.2192 shares of LoJack common stock for each Boomerang share held.
Upon completion of the transaction, and in accordance with the election of Boomerang shareholders, LoJack issued 1.4 million shares of LoJack common stock (including the shares of a LoJack Canadian subsidiary exchangeable into LoJack common stock) and paid USD $36.7 (CAD $44.8) million in cash, for a total value of USD $52.4 (CAD 64.0) million based on USD $11.66 price per LoJack common share, which is the weighted average of the trading prices for the 20 consecutive days ending on October 26, 2004.
Effective today Boomerang shares (TSX:BMG) ceased to trade on the Toronto Stock Exchange where they had been listed.
LoJack Corporation, the premier worldwide marketer of wireless security and location products and services, is the global leader in stolen vehicle recovery. Its stolen vehicle recovery system, delivering a better than 90 percent success rate, is uniquely integrated into law enforcement agencies in the United States that use LoJack”s in-vehicle tracking equipment to recover stolen vehicles. The LoJack System operates in 22 states and the District of Columbia, representing areas of the country with the greatest population density, and highest number of new vehicle sales and incidence of vehicle theft. In addition, LoJack technology is utilized by law enforcement and security organizations in more than 25 countries throughout Europe, Africa and Latin America.
About Boomerang Tracking:
Boomerang Tracking Inc. markets and distributes the Boomerang® tracking devices, proprietary products using technology patented by the Company. The Boomerang, Boomerang2™ and GSM-based units are the central devices in a system that uses the wireless networks of major regional telecommunications companies for tracking stolen assets. The Boomerang Tracking System is capable of locating stolen automobiles, heavy equipment and valuable assets. As a result of its success, the Company has received the endorsement of members of the insurance industry. The Boomerang devices are available and installed through a network of authorized dealers in Quebec and Ontario. The Company’s head office, research and development centre and manufacturing facilities are located in Montreal, Quebec, with regional facilities located in Mississauga, Ontario. Boomerang is a registered trademark and Boomerang2 is a trademark of Boomerang Tracking Inc. Boomerang Tracking Inc. is a wholly owned subsidiary of LoJack Corporation (NASDAQ:LOJN). http://www.boomerangtracking.comTags: Boomerang Tracking, LoJack, vehicle theft