Com21 to Acquire BitCom, Inc., Broadband Engineering Firm; New Group to
Become Maryland Development Center
MILPITAS, Calif.--(BUSINESS WIRE)--June 26, 2000--Com21,
Inc. (Nasdaq:CMTO), a leading global provider of system solutions for
the broadband access market, announced today that it will acquire
BitCom, Inc., a privately held engineering consulting firm in
Germantown, Maryland, for $4 million in cash.
In addition, Com21 has allotted 395,000 shares of Com21 common
stock for assumed BitCom stock options and contingent stock grants for
current BitCom employees. The acquisition, which is expected to be
effective July 6, 2000, will be accounted for using purchase accounting.
BitCom, which specializes in wireless, satellite, and networking
engineering, will become Com21's Maryland Development Center.
"The acquisition of BitCom provides us with a high quality engineering
team with a proven track record," remarked Ron Foster, chief operating
officer of Com21. "Com21 engineering teams have been the key to our
success, both here in the United States and in Europe, and we expect
that the Maryland Development Center will become one more link in
that strong technology chain."
Mohammad Soleimani, BitCom's founder and president, agreed. "It is a
pleasure to join Com21," said Soleimani. "Their focus on quality
engineering and commitment to the various product lines and industry
standards fit well with BitCom's expertise and vision. We look forward
to making a strong contribution to the continued success of Com21."
Soleimani will become director of the Maryland Development Center,
and will report to Paul Gordon, vice president of Engineering for
Com21.
With the pending acquisition of BitCom and the previously announced
GADline (Jerusalem, Israel) acquisition, Com21 continues to
strengthen its worldwide technology capabilities in the broadband access
market by developing regional centers of competence. In addition to the
central product development group in Milpitas, California, Com21
maintains its European Development Centre (Cork, Ireland) which
focuses on DVB products. Upon the completion of the GADline
acquisition, the Israeli group will focus on Com21's
telephony-over-cable products. Com21 will use the BitCom acquisition
to create the Maryland Development Center, which will initially focus
on Com21's ATM-based ComUNITY(TM) Access System, an
end-to-end broadband access system including headend and cable
modem equipment and network management software.
"There are various broadband standards throughout the world," noted
Foster. "Com21 intends to remain a leader in all standards
environments, and our commitment to our ATM-based ComUNITY
Access System customers is greatly enhanced with this acquisition."
About Com21, Inc.
Com21, Inc. is a leading global supplier of system solutions for the
broadband access market. The Company's DOCSIS, DVB, and
ATM-based products enable cable operators and service providers to
deliver high-speed, cost-effective Internet and telephony applications
to corporate telecommuters, small businesses, home offices, and
residential users. To date, Com21 has shipped over a half million cable
modems worldwide, along with nearly one thousand headend
controllers. Com21 systems offer commercial service in cable systems
passing 15 million households worldwide.
Com21 is an ISO 9001 registered company with over 260 employees in
13 countries. The Company's corporate headquarters is located in
Milpitas, California, USA, with its European headquarters in Delft, The
Netherlands. In addition, Com21 maintains a European Development
Centre in Cork, Ireland, as well as sales and support offices in the United
States and Canada, Europe, Asia, and Latin America.
About BitCom, Inc.
BitCom, Inc., a Delaware company with facilities in the state of
Maryland, specializes in turnkey development of networking and
consumer electronic equipment. Founded in 1997, BitCom has grown
through performing contract engineering for leading communication
equipment vendors designing carrier class and high volume equipment
for both TDM and packet-based systems.
Safe Harbor Act Clause
This press release contains forward-looking information within the
meaning of Section 27A of the Securities Act of 1933 and Section21E
of the Securities Exchange Act of 1934, and is subject to the safe
harbors created by those sections. This press release contains
forward-looking statements related to Com21's acquisition of BitCom.
Actual results may differ materially due to a number of factors,
including Com21's ability to integrate BitCom with existing business.
The matters discussed in this press release may also involve risks and
uncertainties concerning Com21's products and services described in
Com21's filings with the Securities and Exchange Commission (SEC).
In particular, see the risk factors described in the Company's most
recent Form 10K and Form 10Q. Com21 assumes no obligation to
update the forward-looking information contained in this press release.
Com21(R)is a registered trademark of Com21, Inc., Milpitas, California,
U.S.A. All other trademarks are the property of their respective owners.
CONTACT: Com21 Public Relations
Cindy Villanueva
408/544-1349
cindyv@com21.com
or
Com21 International
Brenda Clery, Marketing Communications
+31 6 -2700 -0202
bclery@com21.com
or
Com21 Investor Relations
Judith Yoakum
408.953.9218
judy@com21.com
or
Morgen-Walke IR Agency
Ty George
415.296.4525
tgeorge@mwa-sf.com
Media: Michelle Ochoa
415.296.7383
mochoa@mwa-sf.com |
