Datron Buys Holdings of Subsidiary’s Founder
Datron Systems said it bought the 370,139 shares held by Wyclif A. Reed, founder and former president of Datron’s Trans World Communications subsidiary.
The shares were bought for $3 million, or about $8.11 a share, and cuts Datron’s shares outstanding by 12% to 2.7 million. Reed’s 12% stake in Datron made him the company’s second-largest shareholder.
Reed also resigned from the Simi Valley defense electronics firm’s board of directors. In addition to the money he receives for his stock, Reed will be paid an additional $700,000 for agreeing not to compete with Datron for five years.
Reed received the stock over three years as part of Datron’s acquisition in 1985 of Trans World Communications. Datron said Reed resigned earlier this year as president of Trans World Communications because he found it difficult to adjust from being sole owner of a private company to running the business for a larger company. The company said Reed plans to pursue other interests.