SAI, King settle disputed note
MANASQUAN, N.J. and ARLINGTON HEIGHTS, Ill.-Company officials from the former King-Monital and Security Associates International can finally close the file on their failed 2001 merger after the two reached a settlement on a disputed $1.75 million.
The terms of the settlement call for KC Acquisition Corp. to pay SAI $900,000 in monthly payments of $20,000 with a lump sum of $720,000 due on Dec. 31 of 2002, according to SAI's Securities and Exchange Commission filing. SAI officials could not be reached for comment.
The note, which included $1.5 million and $225,000 of interest, stemmed from the summer of 2001 when SAI and SecurityVillage.com, an Internet-based subsidiary of Israeli company Security Village, entered into an agreement that SecurityVillage.com would contribute $1.5 million of the purchase price of the former King-Monital tp combine the three companies under the SAI umbrella.
"Had the merger happened, the note would have gone away," said Tom Few, chairman and chief executive of Criticom, known as King-Monital until it merged with International Dispatch Center early last fall.
"There were a number of claims on both sides," Few said. Both companies felt it would have been a "long, extended litigation" and that it was in both companies' best interest to settle the case, he said.