FLEMINGTON, N.J. May 20 --Digital Broadband Networks Inc. announced today it has signed a definitive agreement to purchase the outstanding common stock of Convergent Technologies Inc. for $2.6 million. The purchase price was revised from $5 million to $2.6 million after negotiations with Convergent shareholders, who will receive $500,000 cash and 500,000 shares of preferred or common stock, depending on market conditions and price of the company's shares at the time of closing, expected by July 15.
After the purchase, Convergent Technologies will become a wholly owned subsidiary of Digital Broadband Networks and will be used to implement biometric security-related projects in the US. Digital Broadband will use Convergent's offices in London for its European branch office; it will retain offices in Perth, Australia for investment purposes. Convergent's new business activity is expected to generate additional revenues of $5 million for Digital Broadband in 2003.
For more information, visit: www.dbni.net