Gradco Deal to Buy Ziyad Now Half Cash, Half Stock

Irvine-based Gradco Systems Inc., a supplier of copy machine sorters, announced Monday that, under terms of a new agreement, the company will increase the cash portion of an acquisition agreement to 50%, but the total purchase price for a New Jersey manufacturer of paper feeders for laser printers will be cut by $2.1 million.

Gradco will now acquire Ziyad Inc. as a wholly owned subsidiary for an equal amount of cash and Gradco common stock totaling $22.4 million.

In late October, Gradco had agreed to pay 30% cash and 70% stock in a $24.5-million deal for the paper feeder company. The original agreement expired Nov. 30

A Gradco spokesman said the terms of the agreement were revised so that all Ziyad shareholders will receive the same amount of cash and stock. Under the old agreement, some Ziyad corporate insiders were receiving more cash than other shareholders, said Bert Degheri, director of Gradco’s investor relations.

Gradco also announced an initial agreement to sell development rights of an electronic printing-related device to Genicom Corp., a Virginia maker of computer printers. Details of the agreement between the two companies were not released; however, the companies said that Gradco will supply Genicom with paper sorters as well as feeders for Genicom laser printers, now that a new deal with Ziyad has been reached.