Gradco Systems Inc. said Friday that it has signed an agreement to acquire New Jersey-based Ziyad Inc. for approximately $24.5 million.
The deal--30% in cash and 70% in Gradco common stock--will merge two companies at opposite ends of the paper-handling business. Ziyad creates paper feeders for laser printers, and Gradco is the nation's largest supplier of paper sorters used on copy machines, according to Gradco's chairman, Keith B. Stewart.
Stewart said consolidation of the two companies is slated for the fourth quarter of Gradco's 1987 fiscal year, which ends March 30.
Ziyad has a net worth of $28 million, Stewart said, of which $20 million is in cash, marketable securities and receivables. Through the acquisition, Gradco will gain the cash needed for the transaction--approximately $7.3 million--with the balance being paid in Gradco stock valued at between $10 and $12 a share.