Reverse triangular merger

Reverse triangular merger

Reverse Triangular Merger

In mergers and acquisitions, a situation in which a company is acquiring a publicly-traded target company and, in the process, a subsidiary of the acquiring company merges with the target company. When this occurs, the equity of the subsidiary is reflected in the target company's stock. The result makes the target company a wholly owned subsidiary, and shareholders in the target company instead receive shares in the acquiring company. Reverse triangular mergers occur when regulations or contracts require that certain assets not change hands.
References in periodicals archive ?
through a reverse triangular merger with a wholly-owned subsidiary of Proofpoint.
Atlas was formed on December 31, 2010 through a reverse triangular merger and the consolidated financial statements for 2010 are those of Atlas and its two insurance subsidiaries, American Country Insurance Company and American Service Insurance Company, Inc.
368 provides two alternatives for a stock acquisition: a type B (stock-for-stock) reorganization (4) or a reverse triangular merger.
Taxpayers previously involved in tax-free stock-for-stock exchanges qualifying as either a "B" reorganization or a reverse triangular merger could be significantly affected by the IRS's final word on basis study computation.
Under the terms of the agreement, American Home will reorganize through a reverse triangular merger that will cause a newly formed REIT to become American Home's parent.
Most recently he served as a financial consultant for Australian online gaming company Shoreline Marketing while it completed a reverse triangular merger.
This change is being made in conjunction with the Company's previously announced reverse triangular merger and financing transaction, which was immediately preceded by the Company's name change from K-Kitz Inc.
The merger has been structured as a stock-for-stock reverse triangular merger whereby a wholly owned subsidiary of MDI will merge with and into Almana Networks International, Inc.
federal income tax purposes, will be accounted for as a reverse triangular merger.
368(a)(2)(D)) or as a reverse triangular merger (by reason of Sec.
The transaction has been structured as a stock-for-stock reverse triangular merger whereby a wholly owned subsidiary of Exar will merge with and into Sipex, with Sipex surviving the merger as a wholly-owned subsidiary of Exar.
368(a)(2)(D)), or as a reverse triangular merger (by reason of Sec.

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