Integrated Systems Acquires SDS
SDS and Diab Data merged to create the No. 1 development tools leader for embedded
software market
SUNNYVALE, CA. July 15, 1999-- Integrated Systems, Inc. (ISI) (NASDAQ: INTS) announced
today that it has purchased the Chicago-based embedded tools company, Software
Development Systems (SDS), a leader in the embedded systems market and supplier of the
popular SingleStep debugging product line. ISI will pay approximately $40 million in stock
and cash for SDS. ISI intends to merge SDS with Diab Data, ISI's current subsidiary that
supplies leading compiler products for embedded software developers. Together, they will
form a new independently operated business to be called Diab-SDS, focusing on supplying
open and innovative development tools to the rapidly growing global embedded market.
ISI will hold a conference call tomorrow morning, Friday, July 16, 1999, at 7:30 am PST to
discuss the SDS acquisition. To participate in the conference call, please dial (415)
228-4950 approximately 10 minutes prior to the start of the call. The confirmation number
for this conference call is 71699. If you have any questions or need additional information,
please contact Elizabeth Moore at emoore@isi.com. No reservation for this call is necessary.
"The formation of Diab-SDS creates a new leader in the embedded tools arena, where Diab
and SDS have been the long-time complementary solutions of choice by a wide range of
customers and partners. This is a great win for the embedded marketplace, giving customers
what they have been requesting for years: a union of the best compiling technology with the
best debugging technology, resulting in more products, better integration and enhanced
world-class support," said Charles M. Boesenberg, president and CEO of Integrated Systems.
"As partners, Diab Data and SDS have worked closely over the years and enjoyed notable
successes," said James E. Challenger, former president and CEO of SDS and newly named
Chief Technology Officer of ISI. "For the dozens of key partners that we've had in common,
such as Motorola Semiconductor Products and other embedded providers, this merger will be
a pleasant and very welcome move, building on a proven commitment to open technology
and a reputation for excellence
Diab-SDS will operate as an independent business, headquartered in Foster City, California.
Diab-SDS tools will continue to be offered with products from a wide range of suppliers,
maintaining the same open business model that Diab and SDS individually had prior to the
merger. The combined revenue of both companies is over $20 million. The business will
have approximately 100 people worldwide, with eight field offices in North America,
development teams in Chicago, Illinois, Sunnyvale and Foster City, California, and
international sales offices in the U.K., Paris, Munich and Tokyo.
The executive management team includes: David Stepner, president of Diab-SDS; Sven
Brehmer, executive vice president and COO; Arthur Orduna, vice president marketing; John
Mezinko, VP of North America Sales; Geoff Revill, VP of European Sales; and Tomas
Evensen, Bob Gable, and Mike Robie as Site Engineering Managers. Diab-SDS will have a
separate Board of Directors, chaired by Charles M. Boesenberg. Other board members
include: Sven Brehmer, James Challenger, Ingvar Larsson and David Stepner. James
Challenger, formerly president and CEO of SDS, will become chief technology officer of ISI.
"The merging of Diab Data and SDS allows us to focus resources on product innovation with
a common technological vision," said David Stepner, president of Diab-SDS. "For the
thousands of customers that we share in common, the immediate and long-term benefits are
highly significant, ranging from an easier and simplified business interface to the promise of
setting new standards in product quality and ease of use."
About Integrated Systems
Integrated Systems, Inc. is a leading worldwide provider of embedded systems software for a
broad range of industries, including telecommunications, data communications, automotive,
digital office and consumer electronics. ISI's software helps manufacturers bring higher
quality, more fully featured products to market faster. The company's global customer base
includes blue chip corporations such as: Boeing, Canon, Cisco, Daimler-Chrysler, Ericsson,
Honda, IBM, Kodak, Lucent Technologies, Motorola, Nokia, Sony, 3Com and Xerox. Sales
and services offices are located worldwide in Asia, Europe, and North America. Additional
information about the Company is available at its website: isi.com.
The statements in this news release regarding future matters such as the Company's growth
rate and market position and other statements regarding matters that are not historical are
forward-looking statements. Forward-looking statements are subject to risks and uncertainties.
The Company's actual results could differ materially from those expressed in or implied by
any forward-looking statements. Factors that could cause or contribute to such material
differences include, but are not limited to, the timely availability and acceptance of recently
announced and future products, the cost of developing and introducing new products, the
impact of competitive products and pricing, the management of growth, the successful
integration of acquisitions, sufficient availability of qualified personnel, changes in
international operations, including exchange rate risks, changes in market conditions for the
Company's products and other risks discussed from time-to-time in the Company's Securities
and Exchange Commission reports
### |
