Jim Estill is moving to Melville, N.Y. to takeover Nu Horizons Electronics andhis new home has a population just under 15,000 people. So you wouldthink that Nu Horizons is the biggest company on the block, but itsnot.
I found this next geographic fact quite interesting. Nu Horizons’ neighbour is none other than Arrow Electronics, which has been voted by Newsday newspaper the largest business in Long Island since 1997. Nu Horizons is in the top 25 and based in the same area as CA and Weight Watchers.
Thereisn’t much information on Nu Horizons except for its Web site, butEstill can claim that a day after his announcement the Nu Horizonsstock (NUHC) increased to closed at $3 bucks even.
Thestock play in this deal is what I find interesting. According to NuHorizons, Estill will be granted 360,000 inducement stock options. Thestock options will have an exercise price equal to the greater of $2.00per share or the closing stock price on the trading day preceding theeffective date of his employment; a term of 10 years from the date ofgrant; and will vest in three traunches of 120,000 shares depending on the duration of Estill’s employment and the achievement of a targeted stock price.
CDNdoes not know what the targeted stock price may be and I doubt Estillor any other Nu Horizons employee would tell me. But, the stock had a52-week high of $6.72. And, in April of 2007 NUHC closed at $11.67 inNasdaq trading. That wasn’t too long ago.
So there is great potential here for Estill to increase the stock price and make his deal more lucrative.
Thecompany of about 700 employees is flying under the radar even in itsown home town. They did open up an Asian facility this year but as Isee it plays to Estill’s strengths. He knows how to grow companies. Hehas proven that for 30 years. This is another EMJ; just that it is in adifferent part of the technology sector. I wish him luck, but I thinkhe really isn’t going to need it.
Three quick hits before I go. I am happy and also sad to see Gus Piccin of OKI Data Canada leavethis market for a great opportunity at the company’s headquarters inMount Laurel, N.J., just outside of Philadelphia. Piccin, a friend of CDNfor many years, will be moving his family down south for thisopportunity. Piccin has been the GM of OKI Data Canada for more than 10years. He will be OKI Data Americas new vice-president of U.S BTAsales. In case you are wondering what BTA is? The BTA stands for the Business Technology Association ,an international not-for-profit trade association serving independentdealers, value-added resellers, systems integrators, manufacturers anddistributors in the business equipment and systems industry.OKI targets this group with product specific offerings for BTA dealers.This is a terrific opportunity for Piccin who I know will do reallywell. CDN wishes him the very best. Let’s just hope he does not switch allegiances from Toronto FC to the new Philadelphia MLS franchise which will start playing in 2010.
Mario Pallotta has been named National Sales Director and Ron Southhall, National Service and Operations Manager for OKI Data Canada.