Any opinions on the L3 acquisition? I am curious about how SSPIF finances the deal because the stock offering was called off.
--Chun
Thursday June 12 8:55 AM EDT
Company Press Release
Source: Spectrum Signal Processing Inc.
Spectrum Signal Processing Acquires 3L Limited
Spectrum Invests in Future of DSP Industry and Participates in the Industry
Consolidation Trend
BURNABY, B.C., June 12 /PRNewswire/ -- Spectrum Signal Processing Inc.,
(Nasdaq-NNM:SSPIF) today announced their acquisition of 3L Limited, located
in Edinburgh, Scotland, one of the DSP industry's leading vendors of
Real-Time Operating Systems and multi-processor DSP software tools. Over the
past year the DSP industry has seen a number of key acquisitions take place
which will eventually lead to the complete consolidation of this industry.
As the leader in the DSP systems market, Spectrum will be a substantial
player in this consolidation trend and has chosen to begin with their
acquisition of a strong DSP software tools provider, 3L Limited. 3L's high
margin software products will complement Spectrum's existing hardware and
software lines contributing to synergistic revenue and gross margin
contribution in the future.
Barry Jinks, Spectrum's president and CEO explains, ``Spectrum's aggressive
growth plans naturally include the acquisition of complementary companies.
Acquiring the right companies will allow us to accelerate the growth rate of
our company, offer more complete solutions to our customers, and get in the
door earlier.'' He adds, ``Our other goal with this acquisition is to
strengthen the DSP market as a whole. The need for sophisticated,
standardized tools served as a catalyst for our decision to acquire 3L in
particular.''
``This acquisition will allow 3L to quickly and steadily expand its existing
business by capitalizing on Spectrum's sales channel, marketing expertise
and financial backing'' asserts Peter Robertson, Managing Director & CEO of
3L Limited. ``We strongly believe that Spectrum's investment in 3L is an
investment in the overall DSP software industry which will likely lead to a
software revolution resulting in the industry standardization of DSP
software, a development which is sorely needed both in North America and
Europe. ''Peter adds, ``This acquisition will also give Spectrum the
opportunity to leverage our existing channel in the European marketplace.''
The acquisition of 3L will contribute to Spectrum's leadership in the DSP
software revolution which will eventually propel the industry towards
industry standards in DSP software. Coupled with the financial and marketing
resources of Spectrum, 3L will now be able to intensify its development of
quality, standardized tools for advanced processors.
This acquisition will not in any way limit 3L's ability to provide their
current customers with the best DSP tools in the business. 3L will likewise
retain their name, product licensing and present location in Edinburgh,
Scotland. Spectrum does, however, intend to increase 3L staffing in response
to the immediate need for advanced tools to complement future sophisticated
multi-processor offerings. Product announcements will be forthcoming from 3L
in the fall of this year.
3L is the leading provider worldwide of real-time operating systems and
parallel programming tools for multi-processor DSP applications based on
Texas Instruments' TMS32OC4x. These tools shorten time-to-market for
developers of high-end signal processing applications in defense,
telecommunications, and image processing. Based in Scotland, 3L is located
at 86/92 Causewayside, Edinburgh EH9 1PY and has a web presence at
threel.co.uk (tel. 011-44-131-662-4333, fax 011-44-131-662-4556).
Spectrum Signal Processing is the leading North American supplier of DSP
system solutions. The company offers DSP software, off-the-shelf hardware,
custom ASIC design and complete custom systems. Customers such as Nortel,
NEC, IBM, the US Dept. of Defense and Lockheed Martin benefit from
Spectrum's innovative, programmable DSP products, by gaining competitive
advantages such as faster time to market and low-cost feature set
upgradeability. Spectrum Signal Processing is publicly traded on Nasdaq NMS
under the symbol SSPIF and on the TSE under the symbol SSY. The company is
ISO9001 quality certified, and can be found on the web at
www.spectrumsignal.com, and is located at 100 - 8525 Baxter Place, Burnaby,
B.C., Canada. (604) 421-5422; fax (604) 421-1764.
-------------------------
SOURCE: Spectrum Signal Processing Inc.
Contact: Susan Schoenhals, Investor Relations, 604-421-5422, Email:
Susan_Schoenhals@spectrumsignal.com, or Tanis MacSween, Marketing
Communications, 604-421-5422, Email: Tanis_MacSween@spectrumsignal.com |
