NexTech Solutions (Pink Sheets: NXSN) and FAS Technologies LLC, recently announced that the two companies would be merging into one by the end of 2007.According to a recent press release, this new company – which will be listed under the symbol NXSN, but go by the name NexTech-FAS – will work to benefit both the parent companies by broadening NexTech’s range technology solutions and opening up more sales channels to FAS. Since the two companies already have greatly similar technologies and work in complementary industries, the merger is expected to be seamless.
“We basically serve the same market,” NexTech CEO and President Tony DiNapoli said during an interview with MN1. “Historically our clients were also FAS tech clients, so now we’re joined at the hip. It’s very synergisitic – They (FAS) provide a coating technology for the flat panel display, and we provide inspection for the same segment. [In the past,] we had the same client base, but with this synergy, we can have a larger part of market penetration.”
NexTech currently works wholly in the microelectronics field, manufacturing products for automated calibration, inspection, and handling of advanced substrates used in the industry. Likewise, FAS is a pioneer of extrusion coating technology, specializing in liquid polymer films applied to glass – which are used in flat panel displays – as well as silicon wafers and other substrates.
If the press release is any indication, both NexTech and FAS are ecstatic over what the merger could bring to both companies.
“For manufacturers of semiconductors, flat panel displays, solar panels and medical equipment, efficient handling, coating and inspection is critical to ensure maximum surface integrity, reduced costs and higher yields,” NexTech President and CEO Tony DiNapoli said in the release. “The addition of FAS’ expertise, patented products and market-proven technologies will enable NexTech to expand its global customer base, address large, fast-growing markets and offer more productive processing solutions for current and next-generation products.”
Ted Snodgrass, the president and CEO of FAS, was equally pleased with the merger.
“This merger is strategic and beneficial for both companies,” Snodgrass said. “We serve the same markets, have synergies in sales and marketing and, by combining product development, have the opportunity to offer exciting new solutions to customers.”
Once the merger is finalized, DiNapoli says the company’s next move is to be listed on the OTCBB – something they expect will increase the company’s already well-known reputation within the industry, FAS’ in particular.
“FAS is a 20-year old company … with a good reputation,” DiNapoli said. “They have 40 patents that have been filed in the U.S., China, Korea, Japan… they bring a huge intellectual property and portfolio along.”
“We’re very optimistic about the future of our companies,” DiNapoli added.
The new company will be called NextTech FAS, because FAS has such a good reputation.