Salt Lake-based World Internetworks Inc.'s board of directors has approved an agreement and plan of reorganization by which a wholly owned subsidiary of World will merge with privately held GT Data Corp. of San Jose, Calif.
The transaction is expected to be completed in the first half of this month. It is subject to GT Data stockholder approval on or about Monday. After the merger and the required 2-for-1 reverse consolidation of World's issued and outstanding stock, current World stockholders will own about half of the issued and outstanding shares.
GT Data is a high-end data storage products company. Its operating subsidiary TSLi of Simi Valley, Calif., provides repair and logistics solutions. GT Data reported a net operating loss of $255,000 on revenues of approximately $8.2 million for the year 2000.
Steven K. Hansen, chairman, president and chief executive officer of World Internetworks, said the company is "enthusiastic" about offering shareholders the opportunity to participate in the data storage industry while still maintaining the company's position in the Internet services market.