AMSC Alters Pact to Acquire The Switch
American Superconductor Corporation (NASDAQ: AMSC), a global power technologies company, today announced that it has entered into an amendment to its definitive purchase agreement to acquire The Switch Engineering Oy, a power technologies company headquartered in Finland. Under the terms of this amended agreement, on June 29, 2011, AMSC paid the sellers EUR14.2 million, or approximately 7.5 percent of the transaction's EUR190 million purchase price, in cash as an advance payment.
The termination date of the agreement has been extended to September 30, 2011, with the option for two additional 30-day extensions to allow AMSC time to secure additional financing sufficient to fund the acquisition and future working capital requirements.
If the acquisition is not completed by the termination date due to a lack of financing or a material adverse change in The Switch's business, and if the agreement is terminated, the aforementioned EUR14.2 million advance payment would be retained by the sellers as the break-up fee.
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