Penguin Solutions, Inc. · NASDAQ:PENG
Penguin Solutions — SMART Global Holdings — Merger or Acquisition (June 2022)
12 slides from Penguin Solutions's merger presentation, Jun 29, 2022
Slide 1: SGH to Acquire Stratus Technologies
SGH TO ACQUIRE STRATUS TECHNOLOGIES JUNE 29, 2022
Slide 2: Disclaimer
Disclaimer This presentation and oral communications made during the course of this presentation will contain Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. "forward-looking statements," including, among other things, statements regarding future e
Slide 3: Why Stratus
Why Stratus Stratus Aligns with SGH’s Acquisition Framework Competes in High-Value Specialty Market Leadership Position Strengthens IPS Business Mission-critical solutions servicing large & Industry leading high-availability, fault-tolerant Expected to scale IPS business and extend fast-growing data
Slide 4: A Strong Track Record of Successful Acquisitions
A Strong Track Record of Successful Acquisitions June 2018 July 2019 March 2021 2022* Value Add Value Add Value Add Value Add Human capital Global manufacturing Capital-efficient model Operational excellence scale and efficiency and growth mindset Supply chain Global manufacturing excellence efficie
Slide 5: The Proof: SGH Then and Now
The Proof: SGH Then and Now FY 2016 Q3 FY 2022 Europe 5% Other 3% Other 12% LED Memory 21% 57% Europe 7% US 20% Diversification Brazil 25% Memory FY FY Q3 Q3 100% 2016A 2016A Brazil 46% Memory 2022A IPS 2022A US 37% Asia 19% Asia 27% 22% FY2016 Revenue $534M LTM Q3 ‘22 Revenue $1.8B Growth and Scale
Slide 6: About Stratus
About Stratus Creating Edge and Core Computing Solutions to Maynard, Simplify and Protect a Connected World 1980 MA Year Founded Headquarters For more than 40 years, Stratus has provided high-availability, fault-tolerant computing to Fortune 500 companies and small-to-medium sized businesses enablin
Slide 7: Stratus Business Overview
Stratus Business Overview Products Revenue Breakdown V-Series ftServer® APAC 15% EMEA 17% Data Center Japan 27% Americas 41% ftServer® everRun® Large Customer Base Across Multiple Industries Information Technology (“IT”) Edge 3/4 Largest U.S. 5/10 World’s 6/10 Top Global ~4,000 Credit Card Largest F
Slide 8: Expands SGH's Platforms, Software, and Services Offerings
Expands SGH’s Platforms, Software, and Services Offerings Within Intelligent Platform Solution (IPS) Business Line Stratus adds high-availability, fault-tolerant solutions in the data center and Stratus customers benefit at the Edge, and $80M+ of recurring, high-margin services revenue from IPS Clou
Slide 9: Transaction Overview
Transaction Overview Transaction Structure Transaction and Purchase Price Impact SGH to acquire Stratus for $225 Expected to significantly million and up to a $50 million of increase IPS services revenue earnout consideration Expected to be immediately $225 million cash consideration accreti
Slide 10: Contributes to SGH's Growth and Diversification Strategy
Contributes to SGH’s Growth and Diversification Strategy Financial Profile Diversification Metric Stratus Contribution 21% 24% 22% Revenue $150M+ 27% SGH Q3 Pro 2022 LTM Forma LTM Gross Margin1 150+ bps improvement 55% 51% Expected to be accretive EPS1 to non-GAAP EPS immediately Intelligent Platfor
Slide 11: Positioned for Success
Positioned for Success Competes in High-Value Specialty Market Leadership Position Strengthens IPS Business Mission-critical solutions servicing large & Industry leading fault-tolerant/high-availability Expected to scale IPS business and extend fast-growing data center, IT & solutions for data cente
Slide 12: Powering Growth. Expanding Possibilities.
POWERING GROWTH. EXPANDING POSSIBILITIES.
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