A newly formed subsidiary of Broadcast International Inc. of Midvale will be merged with CheckRite International Inc. and become a wholly-owned subsidiary of BI, according to an agreement in principle reached by the two companies.

Dwight H. Egan, BI president, and B. E. Nethery, CheckRite president, said that as a result of the proposed merger, shareholders of CheckRite will receive shares of BI in exchange for all of the current issued and outstanding shares of CheckRite.Coincident with the merger, BI Investors Limited, the majority shareholder of BI, has agreed to purchase additional shares of BI for cash and following the merger will remain a 70 percent shareholder of BI.

Both presidents said the agreement is subject to approval by the boards of directors of both companies, approval by the shareholders and completion of the agreement.