ST Engineering says its electronics arm, ST Electronics, has entered into an agreement to acquire the remaining 21.43% equity stake in Intelect Technologies Inc. from the other existing shareholder for US$150,000 ($210,750).

The purchase consideration was arrived at on a willing buyer willing seller basis taking into consideration Intelect’s current assets and future prospects. The acquisition will be fully paid in cash.

Consequent to the acquisition, Intelect will become a wholly-owned subsidiary of ST Electronics. ST Electronics had first acquired Intelect in 2001 with a 66.67% stake which was increased to 78.57% in 2003.

ST Electronics plans to consolidate Intelect into VT iDirect, Inc. iDirect is a wholly owned subsidiary of Vision Technologies Systems, Inc. (VT Systems), the US headquarters of ST Engineering.

Intelect currently operates as a small standalone communications product company in the US. By consolidating Intelect with iDirect, it will have immediate access to the latter’s marketing network in the US, and management resources to grow its business further.

Moving ahead, communications products from ST Electronics will be marketed and channelled to the US market through Intelect and iDirect.

The acquisition and subsequent consolidation of Intelect into iDirect are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.