CDKnet.com Inc. announced in February that it entered into an agreement with Western Power & Equipment Corp. to acquire a portion of Western’s business in Nevada and California.
Western Power & Equipment Corp. sells, leases, rents and services construction and industrial equipment for Case Corporation and 30 other manufacturers.
The transaction will involve CDK’s acquisition of approximately $15 million of tangible assets and operations, which reported approximately $50 million of total revenue for the year ended July 31, 2002, in exchange for the assumption or replacement of existing debt, a cash payment of $500,000 and a five-year promissory note of $500,000. Certain members of Western Power’s management will receive approximately 60 percent of the post transaction combined entity.
The completion of the transaction remains subject to several conditions.