Itron (Spokane, Washington, U.S.), a technology provider and source of knowledge to the energy and water industries for collecting, analyzing and applying critical data about electric, gas and water usage, has completed the acquisition of LineSoft Corp. (Spokane), a provider of software solutions and engineering consulting services for optimizing utility transmission and distribution systems.

Itron is accounting for the transaction as a purchase. An initial purchase price of US$42 million is subject to a working capital adjustment that will be finalized 45 days from closing. At closing, the working capital adjustment was preliminarily calculated as $600,000, resulting in a net purchase price of $41.4 million. Of this amount, $21 million was paid through the issuance of 848,870 shares of Itron common stock and cash from fractional interests. The remaining $20.4 million was paid in cash, except for $1 million that was placed in escrow as security for the sellers' indemnifications and $600,000 that was placed in escrow as the initial working capital price adjustment. The purchase price also is subject to additional earnout payments to LineSoft shareholders in the event that revenue hurdles in 2002 to 2004 are exceeded.
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