9/16/2002 - Performance Technologies announced an agreement with Intel to acquire a portion of its embedded Communications Platform Division located in San Luis Obispo, California, in a sale-of-stock transaction. The acquisition makes the San Luis Obispo operation a fully owned operating unit of Performance Technologies and more than doubles the company's total available market in the embedded systems space through the addition of system and computing products.
"This acquisition provides us with a highly complementary product line that has virtually no overlap with our existing products and a significant number of mutual customers," said Donald Turrell, president and CEO of Performance Technologies. "In a time when equipment manufacturers and integrators are looking to establish strategic relationships with fewer vendors, this acquisition is key as it allows us to immediately offer a broader range of products to our customers."
Completion of the transaction is expected on or before October 1, 2002, for an aggregate cash consideration of approximately $3.8 million. As an additional part of the agreement, Intel will license certain PICMG® 2.16-based products from Performance Technologies. Upon completion of the transaction, the new unit of Performance Technologies will continue to operate in its San Luis Obispo facility, and products will be branded under the Ziatech name.
The Ziatech line of CompactPCI®, PICMG 2.16 and STD 32-based processor modules and system platforms will become an important extension to the Performance Technologies product family that management believes can contribute to the future growth and expansion of the company. The combined products will allow Performance Technologies to serve a wider set of embedded applications in the data communications, telecommunications, military, industrial automation, transportation and medical markets. Future developments will take advantage of the skills of both companies to create packet-based products for use in emerging IP-based embedded systems and networks.
"Ziatech has a strong reputation as an innovative company in the open standards OEM business, being the original developers of the CompactPCI specification," said Reg Cable, vice president of marketing for Performance Technologies. "Performance Technologies is the original developer of the recent PICMG 2.16 specification. The combination of these two capabilities will provide a strong market presence, allowing us to aggressively address a broad variety of embedded system applications."
As part of this transaction, Performance Technologies will participate in the Intel Applied Computing Platform Provider (ACPP) program. The ACPP program consists of third-party module and software vendors who have established a significant presence in embedded and communications market segments.
About Performance Technologies (www.pt.com)
Performance Technologies (NASDAQ:PTIX) is a global supplier of innovative, packet-based communications and networking equipment. With core competencies in embedded IP/Ethernet, wide area networking and SS7/IP interworking, we offer both hardware and software solutions vital to existing and emerging networks. Our proven products for embedded switching, network access and SS7 network replacement offer cost-saving benefits and time-to-market advantages to companies developing telecom, enterprise and military applications.
Performance Technologies is headquartered in Rochester, New York. Additional engineering facilities are located in San Diego, California, and Ottawa, Canada. For more information about Performance Technologies.
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