Infodata Systems Inc. announced it has signed a Letter of Intent to be acquired by McDonald Bradley Inc. (MBI), a privately held information technology solutions provider to the government marketplace with headquarters in Herndon, Virginia. A definitive agreement is expected to be signed within the next two weeks. The cash offer is for 100% of the stock of Infodata. Based on a current estimate of 6.3 million outstanding shares on a fully diluted basis, the per share purchase price would be $1.20. Based on a current estimate of 5.3 million outstanding shares on a non-fully diluted basis, and on the closing market price of $1.18 per share on May 11, 2005, the purchase price is approximately $1.3 million above Infodata’s current market capitalization. The transaction, which is planned to close by July 31, 2005, is subject to approval by Infodata’s shareholders and other customary conditions of closing, including satisfactory completion of due diligence by MBI.
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