Acquisition to Expand Distribution Channels and Offer Greater Access to Staktek Technologies
Staktek Hosts Conference Call Today at 2:30 p.m. Eastern Time
AUSTIN, Texas--Staktek Holdings, Inc. [NASDAQ: STAK], a market-leading provider of intellectual property (IP) and services for next-generation module technologies, today announced it has signed a definitive agreement to acquire Southland Micro Systems, a leading provider of memory products and services. With this acquisition, Staktek will seek to increase the opportunity to deploy its IP to top-tier server OEMs and data center end customers.
As consideration for the transaction, the definitive agreement provides that Staktek will pay stockholders of Southland $18 million in cash at closing and will assume approximately $5 million in debt. In addition, during the two-year period following closing, Southland stockholders will be entitled to receive additional consideration of $7 million in cash or shares of Staktek common stock, should certain financial growth goals be achieved. The acquisition is expected to be completed within 30 days of the date of signing.
“Southland Micro Systems will be a strong complement to our existing business. Southland’s key OEM relationships will support Staktek’s vision to become a leading supplier of IP solutions for high-performance and power-efficient servers and data centers,” said Wayne R. Lieberman, CEO and president of Staktek. “Our customers will gain greater selection of optimized high-density, high-performance and thermally enhanced module solutions, greater inventory flexibility and increased availability of Staktek IP from multiple sources.”
Lieberman continued, “This acquisition will bring enhanced scale and operational efficiencies in distribution, engineering and manufacturing. We believe it will be a vehicle to enable higher revenues and profits. The increased technology content in major OEM server products will also enhance our ability to expand into other Enterprise Server sub-system markets.”
John Meehan, CEO of Southland Micro Systems, stated, “These two companies share a common culture of innovation and vision. Our customers will receive an expanded portfolio of quality products and services from the stronger combined technical talents of the larger company. This is an exciting time and a ‘win’ for our customers.”
Southland Micro Systems has a design, manufacturing and customer support center in Irvine, California and employs approximately 80 people. Following closing, John Meehan will serve in the capacity of Executive Vice President.
Conference Call
Staktek management will host a conference call with investors today, August 21, 2007, at 1:30 p.m. Central time (2:30 p.m. Eastern time) to discuss the pending acquisition. Investors and other interested parties may access the call by dialing 1-888-396-2386 in the U.S. (1-617-847-8712 outside of the U.S.), with the confirmation code 67119730, at least 10 minutes prior to the start of the call. In addition, an audio web cast will be available through the Staktek web site at http://www.staktek.com. A replay will be available for 48 hours following the call at 1-888-286-8010 in the U.S. (1-617-801-6888 outside of the U.S.), confirmation code 59976451.
About Staktek:
Staktek is a market-leading provider of intellectual property and services for next-generation module technologies for high-speed, high-capacity systems. Staktek's TSOP and BGA memory stacking solutions increase operational performance by doubling, tripling or quadrupling the amount of memory in the same physical footprint as required by standard packaging technologies. Staktek's ArctiCore™ is a module technology using a double-sided, multi-layer flexible circuit folded around an aluminum core and is designed for superior thermal, mechanical and electrical performance. With an IP portfolio of more than 200 patents and patent applications pending, the company offers flexibility for customers, including outsourced manufacturing, technology licensing and custom engineering. Headquartered in Austin, Texas, Staktek operates an ISO-certified manufacturing facility in Reynosa, Mexico. For more information, go to http://www.staktek.com.
About Southland:
Southland Micro Systems has been engineering and manufacturing computer memory solutions since 1987. Providing high-quality products and extensive customized services have established the company as a solid supplier to large and mid-size technology companies globally. Southland combines its core competencies of engineering, design, test, manufacturing and supply chain management to consistently exceed customer requirements. The company stays focused on understanding each customer’s total user experience, and maximizing the application of systems and technology. With over 20 years of supporting the fast-paced technology community, Southland continues enabling its customers to achieve memory density and performance goals that standard products cannot deliver. Customers represent the industry leaders in the server, networking, telecommunications and high-performance computing markets. Southland Micro System’s headquarters and manufacturing facility is located in Irvine, California, with sales offices in San Jose, California and Boise, Idaho. For more company and product information, please visit http://www.southlandmicro.com.
