News | May 19, 1999

Remec, STM Wireless Investment in DTPI

STM Wireless Inc. (Irvine, CA) and Remec Inc. (San Diego) have terminated merger negotiations, but are maintaining their existing supplier relationship.

In addition, the companies outlined a $9.6 million strategic investment by Remec in Direc-To-Phone International Inc., STM's Internet and telephony services subsidiary. Specifically, Remec has agreed to make a $5.0 million cash investment in DTPI and has agreed to purchase DTPI shares from STM for an additional $4.6 million.

Pequot Private Equity Fund agreed to participate in the current financing, which comprised a $2.5 million purchase of DTPI shares from STM and a further $2.5 million investment in DTPI, as a follow-on to their initial seed funding.