Genisco Stock Up 40% on News of Global Intellicom Acquisition Deal

Genisco Technology Corp.’s stock rose nearly 40% Thursday after the company announced that it has agreed to acquire Global Intellicom Inc. for $3 million in cash and 3 million shares of newly issued Genisco stock.

For the sale to go through, Genisco said, it must eliminate its major liabilities, including $5.4 million in debt, and accumulate $3 million in cash for working capital. Genisco said there is no guarantee that the company will be able to meet those conditions.

The stock market, however, responded enthusiastically, boosting Genisco’s shares $2.375 to close at $8.375 in American Stock Exchange trading. Volume was nearly five times the three-month daily average.

Genisco said it plans to raise money through a private sale of common stock.

The agreement requires the execution of a definitive agreement by today and is subject to approval by Genisco’s shareholders.

Genisco, based in Anaheim, makes customized computer equipment.

Global Intellicom, based in Philadelphia, sells portable computers, software and mobile communications devices to businesses.