TUCKER, Ga., Oct. 3, 2013 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE), a global leader in design and manufacture of specialty displays and display solutions, today announced a definitive agreement has been negotiated to sell its Z-AXIS Inc. subsidiary (Z-AXIS) to a newly-incorporated NY-based company formed by the current management of Z-AXIS. The sale includes Z-AXIS as well as its BEAR Power Supplies and Boundless Technologies business units.
Under the terms of the agreement, Video Display Corporation (VDC) will receive ninety percent of the sale proceeds in cash at closing with the remaining balance in the form of a subordinated note receivable from the buyer of Z-AXIS. The entities being sold primarily design and manufacture specialty power supplies for the global market and offer contract manufacturing services to customers in the NY State, New England and mid-Atlantic market areas. As part of the VDC family of companies, Z-AXIS accounted for approximately 21.0% of the total corporate revenues for the most recent fiscal year ended Feb 28, 2013.
The transaction, which has been approved by the boards of directors of both companies, is subject to customary closing conditions including review, and it is expected to close on or about November 15, 2013. All current employees and management staff are expected to remain in place at the Z-AXIS headquarters and manufacturing facility in Phelps, NY."Z-AXIS is excited to be embarking on this new experience as a privately held and managed entity, which ensures the continued employment of our local personnel with the same experienced team that has built an extremely successful company in upstate NY," stated Michael Allen, president of the of the Z-AXIS subsidiary of Video Display Corporation. "We are looking forward to this opportunity to continue our growth pattern well into the future here in Ontario County, NY."