Glowpoint Inc. struck a deal to merge with collaboration technology company Oblong Industries Inc.
The merger is expected to close by Oct. 15. In exchange for all outstanding equity in Oblong, Oblong stockholders will receive Glowpoint's series D convertible preferred stock. This will automatically convert into about 17.4 million shares of Glowpoint's common stock at a conversion price of $2.85 per share on approval from the company's shareholders.
Glowpoint shareholders are expected to own about 25% of the combined company, and Oblong stockholders are expected to own about 75% of the combined company.
Pete Holst and David Clark, the current CEO and CFO of Glowpoint, respectively, are expected to offer certain management services to Oblong before the closing of the merger.
Arnold & Porter is acting as legal adviser to Glowpoint and Gunderson Dettmer is acting as legal adviser to Oblong.
Glowpoint is a managed service provider of video collaboration and network apps.
