Health and security assistance provider MedAire disclosed that its two largest shareholders have reached a letter of agreement “outlining mutual goals and strategies in relation to the direction and control of MedAire” that would effectively place control of the company in the hands of its largest competitor, International SOS (ISOS). One of the shareholders is MedAire founder, chairman and CEO Joan Sullivan Garrett, who owns approximately 32.5 percent of the company’s outstanding voting stock. The other is Best Dynamic Services, which has acquired 22.78 percent of MedAire’s outstanding voting stock and is also a subsidiary of ISOS. The current four-member MedAire board of directors will be replaced by a new board made up of six members to be named by Best Dynamic Services and three by Sullivan Garrett. The agreement also calls for the appointment of James Williams, a senior ISOS executive who previously ran ISOS operations, to the MedAire board. An insider said the move is neither a merger nor an acquisition, but is in essence "a de facto takeover" of MedAire by ISOS.
Competitor Gets Control of MedAire
- January 11, 2007, 10:20 AM