To All:
Cybex announced an acquisition of a high-end European KVM switch maker. Looks like an interesting combo. Anyone know of the company being acquired? Here is the press release.
CYBEX TO ACQUIRE ELSNER COMPUTERTECHNIK GmbH AND POLYCON DATA SYSTEMS GMBH
Acquisition to Significantly Expand European Market Share
HUNTSVILLE, Ala.--(BUSINESS WIRE)--Dec. 30, 1997--Cybex Computer Products Corporation (Nasdaq/NM:CBXC - news) today announced the acquisition, effective December 31, 1997, of the stock of Elsner Computertechnik GmbH. and PolyCon Data Systems GmbH., privately-held companies in Steinhagen, Germany, for approximately $8 million (US) plus transaction costs. Elsner is a German manufacturer and marketer of high-end KVM switch products with estimated sales for calendar 1997 of approximately $8.5 million (US). The acquisition of Elsner by Cybex Europe, Ltd. of Shannon, Ireland represents the first acquisition by the Company.
''The Elsner acquisition will significantly expand our leadership and market share in Europe, one of the fastest growing world markets for KVM switch products,'' stated Stephen F. Thornton, president and chief executive of Cybex Computer Products Corporation. ''In addition, the acquisition will broaden our technology in the high-end KVM switch market and expand our distribution in Australia, the Pacific Rim and Japan. Elsner's products are marketed to the high-end segment of the KVM switch market where the average sale is large, margins are strong, and price elasticity is lowest. We believe the combination of our companies product lines will increase our overall market penetration in the U.S., Europe, and other major markets worldwide.''
Cybex expects to record a one-time charge related to the Elsner acquisition in the third fiscal quarter ending December 31, 1997, that will result in a loss for the quarter. Except for this one-time charge, the Elsner acquisition is expected to be accretive to Cybex's earnings going forward. Cybex has had a strong quarter and expects to report earnings in the range or slightly ahead of analysts' estimates.
In accordance with generally accepted accounting principles, costs allocated to research and development assets with alternative future uses will be capitalized, and the remainder of the costs will be expensed as a one-time charge as of the date of consummation of the transaction. Cybex anticipates that a significant portion of the excess purchase price will be allocated to acquired research and development costs based on the relative fair value of the costs acquired and will result in the one-time charge. The Company expects the valuation of the fair market value of the research and development costs acquired to be completed in late January 1998. As a result, Cybex does not expect to report its results for the third fiscal quarter ending December 31, 1997, until February 1998.
''Our combined operations will be the largest KVM product manufacturing, design, and distribution facilities in Europe, enabling us to extend our leadership and take further advantage of opportunities in the fast growing European market,'' stated Kieran MacSweeney, Managing Director of Cybex Europe, Ltd.
Elsner Computertechnik GmbH markets its products under the trade names of PolyCon(TM) and MultyCon(TM). In the U.S., Elsner's products are marketed through a wholly owned subsidiary, PolyCon Investments, Inc. The Company's products are sold to a wide variety of companies, ranging from medium and large industrial- based companies to some of the worlds largest software and hardware manufacturers. The Company's customers include Siemens Nixdorf, Microsoft, Cisco and Dell. Elsner has 49 employees worldwide, including 43 in Germany, 5 in the U.S. and 1 in Australia. Approximately 83% of Elsner's 1997 sales were in the EU with the remainder in the U.S. and Asia/Pacific. Upon completion of the acquisition, Mr. Edgar Elsner, founder, owner, and chief scientist and technologist of Elsner Computertechnik GmbH., will continue as Managing Director in Germany reporting to Cybex Europe, Ltd. in Shannon, Ireland.
''We believe the Elsner product line includes the most advanced connectivity solutions in the industry,'' continued Mr. Thornton. Their products can be connected through a mixture of hard cable, Ethernet cable, and fiber optics over a distance of 16,500 feet. The Company's PolyCon 32x256 full matrix console is the only KVM switch of its kind and is capable of controlling multiple computers from multiple consoles in a matrix based format.
''We expect our combined research and development efforts to create one of the strongest teams in the industry. Both of our companies are product-driven and are the leaders in our respective product categories. We anticipate our combined technologies will result in the continued development of leading-edge products for our customers in all our markets. With Cybex's recent introduction of a KVM switch developed for the retail market, the addition of Elsner's high-end product line will provide our customers with a product offering in every major market segment,'' concluded Mr. Thornton.
''We believe that by combining our companies, we can expand our technological leadership in the KVM market with the industry's largest combined research and development staff,'' stated Edgar Elsner, president of Elsner Computertechnik GmbH. ''Our large R&D staff, coupled with the new Cybex ISO9002 certified manufacturing, distribution and support facility in Ireland, will allow us to continue our technological lead and significantly strengthen our ability to offer innovative and cost-effective products. We are pleased to join forces with Cybex to expand our global market share, expand our product lines and provide our customers with the most advanced KVM solutions on the market.
Cybex Computer Products Corporation (Nasdaq:CBXC - news) is a 16- year-old multinational company which provides KVM connectivity solutions in support of PC and Macintosh personal computers and many Sun, Hewlett-Packard, Silicon Graphics, RS/6000, and DEC Alpha workstations.
Cybex and the Cybex logo are registered trademarks of Cybex Computer Products Corporation. SwitchView is a trademark of Cybex Computer Products Corporation. Sun, Hewlett-Packard, DEC and Silicon Graphics are trademarks of their respective companies. Macintosh is a registered trademark of Apple Computer, Inc. PS/2 and RS/6000 are trademarks of International Business Machines Corporation. IntelliMouse is a trademark of Microsoft Corporation.
This press release contains forward-looking statements that reflect management's best judgment based on factors currently known. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in the statements included in this press release. Readers are cautioned not to place undue reliance on these forward- looking statements that speak only as of the date hereof. Readers are also urged to carefully review and consider the various disclosures made by the Company which attempt to advise interested parties of the factors which affect the Company's business, including the disclosures made in other periodic reports on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. |
