Mitek Acquires Imaging Competitor InReverse Merger
SAN DIEGO - (07/18/06) Mitek Systems, the maker ofdocument imaging software for credit unions and other financialinstitutions, said Monday it has agreed to acquire its Boulder,Colo.-based competitor Parascript in a reverse merger. Under thedeal, Mitek will pay about $145 million, comprised of $80 millionin cash and 52 million shares valued at $1.24 each, to combine thetwo companies and current Mitek shareholders will own just 22% ofthe new entity. The combined company will be called Parascript andbe based in Boulder. The deal is being financed with $90 million inconvertible notes by Plainfield Asset Management, which would givethe Greenwich, Ct., money management firm a 23% stake in the newcompany. Current Mitek shareholders will own 22% and Parascriptholders 55%.