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Product category: Networking Hardware
News Release from: SBS Technologies
Edited by the Electronicstalk Editorial Team on 19 June 2003

SBS to acquire Avvida Systems

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SBS Technologies has reached agreement to acquire Avvida Systems, a privately held company located in Waterloo, Ontario, Canada.

SBS Technologies has reached agreement to acquire Avvida Systems, a privately held company located in Waterloo, Ontario, Canada Avvida specialises in developing imaging solutions for commercial, military and communications applications

Avvida's products are based on FPGA-centric computing that provide system on a chip functionality.

"SBS is focused on increasing our intellectual property-based products for the government, commercial, communications and enterprise markets.

Avvida's innovative approach to image processing and FPGA development expertise combined with SBS' extensive product line are a powerful combination", said Clarence W Peckham, Chief Executive Officer of SBS.

The purchase price of the acquisition is $5.5 million and will be funded with a combination of existing cash and SBS stock.

SBS expects the closing of the acquisition of Avvida within 30 days.

The acquisition of Avvida is expected to make a marginal contribution in sales for the fiscal year ending 30th June 2004.

"Avvida's contribution to SBS will be the addition of key intellectual property and integration of that intellectual property into SBS' product line.

This will position SBS for new program design win opportunities as well as provide new products for image processing and embedded visualisation applications", continued Peckham.

In addition, SBS announced it is consolidating the Communications and Enterprise Group operations by closing the Carlsbad, California facility.

The product design and support functions for the group will be moved to the Mansfield, Massachusetts and Raleigh, North Carolina facilities, while all manufacturing in the USA will be centralised in the company's St Paul, Minnesota facility.

"We are committed to continue to develop leading products for the communications and enterprise markets and have now aligned the group's product development team to maximise design efficiencies", said Peckham.

"In addition, by consolidating our US manufacturing operations to one location we can focus on process and cost improvement".

We expect that the consolidation and closure of the Carlsbad facility will occur within 90 days, and at such time expect a net reduction in headcount of approximately 18.

Cost savings will occur starting in the fourth calendar quarter of 2003.

"Closure of a facility is always painful, but we must remain focused on continued profitability and expansion of our product lines.

New technologies such as image processing, and more importantly, system on a chip designs based on FPGA technology, enhance our product portfolio and ensure we are able to offer our customers a complete solution to meet their embedded computing needs.

We believe the actions announced today position SBS to better serve our customers and other stakeholders", Peckham continued.

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