CARLSBAD — Specialized Systems Inc. said Thursday that it had agreed to be acquired by Hong Kong-based Tauran Industries pending Tauran's infusion of $12.5 million in capital into SSI over the next two years.
The agreement with Tauran could be called off if the firm invests less than $12.5 million in SSI, and no new stock will be issued until then, according to Stephen J. Nemergut, chairman and president of the Carlsbad-based marketer of telecommunications devices for the deaf. Until then, SSI said in an announcement, it would, in essence, be acquiring Tauran for an undisclosed amount. "Eventual control of SSI" will be transferred to Tauran, a financial consulting firm specializing in engineering projects.
The Securities and Exchange Commission already has been notified of the transaction, although SSI shareholders have not, Nemergut said.
Tauran is a joint-venture partner with Henan province in the People's Republic of China in a project to build and develop a plant in the province that will make reinforced fiberglass plastic. Construction of that project is to begin by the third quarter of 1985.