Banctec Inc., a provider of check and data processing systems, said it has an agreement to settle a class action related to its pending merger with the New York-based investment company Welsh, Carson, Anderson & Stowe.

The $525 million merger, announced April 5, values Banctec's shares at $18.50 each. The lawsuit, filed on behalf of shareholders, claimed that was too cheap, said Susan Seiter, a spokeswoman for Banctec. At the time, Banctec's stock was trading at $13 a share.

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