Intrinsyc Software International Inc ISYRF

Two possibilities

[mrmoribund]

It's still interesting that it took ITC something like 7 hours after the start of the December 30 meeting to disclose the result in a press release. It strikes me that there are two things that may be going on.

First, it may that it's now a 100% done deal and there never were any other potential bidders. ITC was just slow to get the press release out. That would be amazingly slow because, with no other bidders, what would be typical for a 1 pm (EST) meeting with 97% approval would be that the result is disclosed at the meeting before 2 pm with a press release very soon after.

The second possibility is that a competing bidder materialized prior to 1 pm (EST) on the day of the meeting. Everything went behind the scenes and it was determined that the "bid" did not meet the definition of a Superior Proposal. Hence, for all intents and purposes, it was nothing. (Also possible: the mystery bidder was not able to get the required okay from Qualcomm.) Later, after the smoke cleared, ITC went ahead with its press release disclosing the vote result--which it had to do.

If something like this happened then we are all waiting now to see if this mystery bidder can adjust its "bid" such that it would indeed meet the definition of a Superior Proposal. Remember, the deal is not done until it gets court approval, presumably still scheduled for January 8.

Note that Lantronix has not put out any press release relating to the vote result. If there were no indication of a competing bidder I suspect they would have put out such a press release. But it would be terribly embarrassing to LTRX if they told the world about this great vote result but then later had Intrinsyc grabbed by someone else at a higher price.

If the deal is completed as originally negotiated it will be an amazing coup for Lantronix. In a very competitive market they will have completed a quality tech acquisition that will be dramatically accretive right out of the gate. We know that Intrinsyc's next few quarters are going to be stellar.

If the deal is completed as originally negotiated I will be hanging on to my Lantronix shares--for two reasons. First, you would have to like CEO Pickle as an M&A whiz for having pulled this off (if he does). Second, the  consolidation of Intrinsyc's results will, I expect, soon make Lantronix's results meaningfully better, and the market presumably will really like that.