Quixote sells Inform segment for $20 million

AP News
Posted: Dec 21, 2009 4:57 PM

Quixote Corp. said Monday it has sold its Inform segment to Vaisala Inc. for $20 million in cash.

Shares leaped nearly 19 percent Monday to close at $2.26. The stock has ranged from $1.75 to $7 in the past year.

The Inform segment makes electronic wireless measuring and sensing devices, road weather information systems, and computerized highway advisory radio transmitting systems. The unit reported sales of $22.6 million in fiscal 2009.

Quixote called the sale a key step in its effort to meet its debt convenants.

The company expects to record a gain on the transaction in the fiscal 2010 second quarter, although it didn't say how much.