CTI acquires majority stake in Sentry

CTI Diversified Holdings announced an agreement today with the founding shareholders of Sentry Telecom Systems to purchase their 89% interest in the company for $1.1 million.

Executives noted that the merger of CTI, a telecom software and hardware developer, and Sentry, a telecom security management software and hardware provider, will help create a global supplier of security products.

Founding shareholders will exchange their 7,160,000 Sentry shares for up to 3,580,000 CTI shares. The CTI shares issued via this exchange will be completed during a three-year period and based on Sentry hitting future performance objectives. In tandem with this, CTI is exchanging $250,000 of demand loans that were advanced by CTI to Sentry into common shares of Sentry, effective Nov. 5. After converting the demand loans and the share exchange, CTI will own more than 90% of Sentry.

Currently an offer is on the table for the remaining Sentry shares: one CTI share for two Sentry shares.

--Amalia D. Parthenios, staff writer