IFX Power PLC
1 May 2002
IFX Power plc
('IFX' or 'the Group')
IFX Power plc acquires the business and certain assets of
Switching Systems International, Inc. for US $9.1 million
IFX Power, a leading mid-tier provider of power solutions to
the electronics industry, today announces that it has
acquired the business and certain assets of Switching
Systems International Inc. ('SSI'), for a total
consideration of US $9.1 million (approximately £6.3
million) plus expenses.
About Switching Systems International
Based in Anaheim, California, SSI operates in, and provides
power supply solutions to the mid-tier of the electronics
industry. SSI has designed its own proprietary range of
configurable power supplies using outsourcing partners as
manufacturers. It also provides value added power supply
solutions using these same products. Value added power
solutions are modified standard devices that can be more
easily integrated into the customer's system. Modifications
can involve providing wiring harnesses, thermal management,
custom enclosures and ensuring Electro Magnetic
Compatibility. This aids the design-in process saving the
customer time and therefore money.
SSI's route to market is currently via manufacturing
representatives in the US. Following the acquisition, this
route will be replaced by IFX's direct sales force. The
acquired business will be integrated into XPiQ, Inc., a
wholly owned subsidiary of IFX.
Consideration payable
The total consideration payable under the acquisition
agreement is US $9.1 million (approximately £6.3 million) in
cash. US $1.25 million of this consideration is deferred for
15 months. Under the terms of this agreement IFX is
acquiring SSI's intellectual property, capital equipment,
stock, trade debtors, trade payables, customer base, and
order backlog, as well as retaining key employees and rights
to use the SSI name.
For the year ended 31 December 2001, SSI had unaudited
revenues of $14.2 million and an unaudited operating loss
(before amortisation of goodwill) of US $3.4 million
(approximately £2.3 million). The net assets acquired are
expected to have a book value of approximately US $6.7
million (approximately £4.6 million).
Strategic rationale for the acquisition
The Directors of IFX believe that the key reasons for and
benefits of the acquisition are:
IFX will expand its configurable power supply product
range;
The Group will increase its design engineering team to
enhance future product development; and
Improved utilisation of existing sales and value added
resources.
Chairman and Chief Executive Officer, Larry Tracey,
commented:
'Today's acquisition is a further step for us in building
the leading position in the mid-tier of the power supply
market. SSI's excellent product line and outsourced
manufacturing combine neatly with our geographic sales
coverage and business direction.'
Enquiries:
IFX Power plc - www.ifxpower.com
Larry Tracey, Chief Executive Officer 0118 976 5028
James Peters, European Managing Director
Duncan Penny, Finance Director
Weber Shandwick Square Mile 020 7950 2800
Kevin Smith or Sally Lewis
Notes to Editors:
IFX Power plc provides power supply solutions to the
electronics industry and operates predominantly within the
high technology sector of the market. IFX's power supplies
regulate and distribute electrical power for various
subsystems and components within electronic equipment.
This information is provided by RNS
The company news service from the London Stock Exchange
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