Entorian Acquires Augmentix
Entorian Technologies (NASDAQ: ENTN), formerly Staktek Holdings, announced the acquisition of Augmentix Corporation, a leader in rugged computing solutions. Both companies are headquartered in Austin. The acquisition positions Entorian to further expand into high-growth markets and to build on its 18-year history of manufacturing and packaging intellectual property (IP) for thermally and performance-intensive environments. Terms of the transaction include $23.5 million in cash and approximately $10.7 million in convertible notes, for a total consideration of approximately $34.2 million, including certain adjustments. The company believes the acquisition will be immediately accretive to earnings, net of one-time expenses related to the acquisition. The Statesman had some additional interesting insight.
The broadening of Entorian’s product portfolio to include rugged PCs and servers provides large-scale revenue growth opportunities. It continues the company’s transformation, complementing Entorian’s core technical expertise in high-speed electrical signaling, heat-dissipating design and packaging. Augmentix provides expertise in designing government and military-grade, rugged systems and intelligent high-availability servers. Together, the company will continue to serve mobile and server platforms, and module form factors for thermally intensive, highly reliable and performance-oriented applications. Augmentix’s revenue for the first half of 2008 was $28 million, and the company expects seasonal growth throughout the remainder of 2008.
“We are excited to become a part of the Entorian team. Our rugged computing solutions for mission-critical applications set new standards in performance, reliability and seamless integration into our customers’ demanding environments. Along with Entorian, we plan to continue to strive to maximize customer value by delivering advanced, world-class solutions for vertical markets,” said Stephan Godevais, president and CEO of Augmentix. Mr. Godevais brings a wealth of experience in the mobile market as he joins the Entorian management team. Prior to joining Augmentix, Mr. Godevais acted as Chairman, President and CEO of Valence Technologies (NASDAQ: VLNC) and was vice president and general manager of Dell’s Inspiron and Dimension product groups. Mr. Godevais will assume the roll of President of the Augmentix subsidiary.
Filed under: Deals
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