Way Cleared for National Education Merger
National Education Corp. and Advanced Systems Inc. said a federal antitrust merger waiting period has expired, clearing the way for stockholder votes on the proposed merger of the two companies.
National Education, with headquarters in Newport Beach, said in October that it plans to merge its Deltak subsidiary with Chicago-based Advanced Systems to create a $180-million-a-year vocational training unit.
Under the all-stock merger, each of Advanced Systems’ 5.6 million shares of common stock will be converted into 1.625 shares of National Education common stock.
Newport Beach-based National Education closed Monday at $17.375, down 12.5 cents per share, giving an indicated value to the merger of $159.2 million. Advanced Systems in Arlington Heights, Ill., closed Monday at $27.375, up $1.375.
Stock Down 26.8%
Because of a depressed stock market, National Education stock has been driven down 26.8% since the merger was announced Oct. 9, making the deal worth $58.5 million less than originally estimated.
National Education officials have said they don’t expect the lower stock prices to affect the merger, partly because Advanced Systems stock is also down--it has fallen 21.5% since Oct. 9.
The companies have scheduled stockholder meetings Dec. 29 to approve the proposed merger. Shareholders of record Nov. 13 will be eligible to vote.
Advanced Systems provides consulting services and training products, with an emphasis on information processing. It employs about 400 people, and last year earned $7.4 million on sales of $63 million.
National Education’s Deltak subsidiary, based in Naperville, Ill., was acquired last year from Gulf+Western Industries. It provides training in data processing and management. The new combined company will probably be based in Naperville, according to David Bright, president of National Education.
National Education, a vocational and technical training firm that employs 4,000 people worldwide, reported earnings of $15 million on revenues of $247 million in 1986.
