The two companies have signed a binding letter of intent to combine their operations. Denbridge is converting about $21 million of debt into equity and raising $3 million via a private placement to fund the deal, and exchanging the remaining Atlantis shares for new Denbridge common shares after a share consolidation.
Denbridge will initially get two of the five seats on Atlantis's board.
After the merger, the combined company, to be called Atlantis Systems, will be split into two divisions.
Training and Simulation will focus on cost-effective aircraft training systems, flight training devices (FTDs), and aircraft maintenance trainers.
Digital Communications will focus on traffic management systems for marine ports, airports and highway installations.
Douglas L. Olson, president of Atlantis, will become president and CEO of the combined entity.
"The combined company will have greatly enhanced technical capabilities and management depth that heighten the company's ability to grow its core businesses, streamline internal operations, and deliver enhanced value to its existing customers," Olson said. "The engineering skills of Atlantis and Denbridge are strongly synergistic."
