ThrustMaster Executes Definitive Agreement to Sell Game Controller Business to the Guillemot Corporation for $15 Million in Cash
Company to Announce Name Change
PORTLAND, Ore.--(BUSINESS WIRE)--July 27, 1999--ThrustMaster, Inc. (Nasdaq:TMSR - news), today announced that it has entered into a definitive agreement to sell the assets of the ThrustMaster game controller hardware business to the Guillemot Corporation of Carentoir, France for $15 million in cash.
The transaction is subject to formal ThrustMaster shareholder approval and is expected to close in early to mid-September 1999.
''The sale of the game controller business reflects our decision to focus exclusively on the significant opportunities in Internet community and communications. This transaction, in conjunction with certain other near-term strategic technology and financial initiatives, will provide us with a significant amount of cash which will enable us to build on our unique client-to-client approach to multi-point audio with other new technologies that enable real-time multimedia interaction,'' stated Frank G. Hausmann, President and CEO of ThrustMaster, Inc. ''In addition, we continue to build a strong management team capable of developing new strategic opportunities and relationships,'' added Hausmann.
The ThrustMaster name is included in the assets being sold. The Company will announce its new name before the transaction closes in September. The new name will reflect the new strategic direction of the Company in Internet community and communications and will be determined by the outcome of other near-term strategic initiatives. ''Our strategy is to grow and leverage our technological capabilities, product offerings and partner/customer relationships through make, license or buy arrangements where appropriate,'' stated David Mcfeeters-Krone, Vice President of Strategic Planning for ThrustMaster, Inc.
The Guillemot Corporation is a large respected manufacturer and reseller of a broad range of computer peripheral products, including 3D graphics cards, sound cards and game controllers. Guillemot plans to continue the ThrustMaster brand name and to build on its reputation for innovative, high quality products. ''Guillemot has the financial strength and economies of scale necessary to continue to build on ThrustMaster's success in the game controller business,'' stated Hausmann. ''I am confident that we have placed the ThrustMaster name in very capable hands.''
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