Electronics Production | March 21, 2006
GE Fanuc To Acquire SBS Technologies
GE Fanuc Embedded Systems, a unit of General Electric Company, and SBS Technologies®, Inc. announced today that GE Fanuc Embedded Systems has agreed to acquire SBS Technologies, a designer of open architecture embedded computer products that enable original equipment manufacturers to serve commercial, communication and government customers.
Pursuant to the transaction, SBS Technologies shareholders will receive $16.50 per share payable in cash, for a total consideration of approximately $215 million, net of SBS Technologies' cash and equivalents. The combination of SBS Technologies and GE Fanuc Embedded Systems will create a broad presence in the industry, offering an extensive line of products ranging from embedded boards in multiple form factors, bus architectures, and fabrics to fully integrated systems available in a range of environmental grades. SBS Technologies is headquartered in Albuquerque, New Mexico with locations in Minnesota, Massachusetts, California, North Carolina, Germany, Canada and China. “SBS Technologies is more than an acquisition for GE Fanuc Embedded Systems, it is a great strategic fit,” said Maryrose Sylvester, president and CEO of GE Fanuc. “The combination of the two companies will provide depth and breadth in crucial product areas primed for growth. “We are very excited about this acquisition,” Sylvester continued, “and we believe the combined entity will be in a position to serve a variety of customers including those interested in communications, medical imaging, industrial automation, and military systems.” SBS Technologies designs and builds computer boards and systems that enable sophisticated products such as robots, aircraft, spacecraft and unmanned vehicles. The company produces more than 500 electronic components that can be configured in thousands of different ways. These products include single board computers, communications and networking modules, and complete systems. SBS products are designed to open standards such as CompactPCI (CPCI), VMEbus (VME), PCI, PCI-Express, PMC, PC/104, AdvancedMC, and AdvancedTCA. SBS Technologies' single board computers are based on Intel® architecture, PowerPC® and FPGA processors. “This transaction will benefit both SBS Technologies' customers and GE Fanuc Embedded Systems' customers,” said Clarence Peckham, CEO of SBS Technologies. “Our complementary product sets provide our customers with a fantastic range of solutions today, and the combined resources will be able to take us farther in the future than either of our two companies could go working alone.” SBS Technologies has an excellent presence in Europe and Asia, adding to the team GE Fanuc Embedded Systems has in place in those regions. And, the combined entity will have approximately 900 employees worldwide, 250 of whom are engineers. Under the terms of the agreement, GE Fanuc Embedded Systems will acquire all of the issued and outstanding Common Shares of SBS Technologies (Nasdaq: SBSE). The transaction, which is subject to regulatory approvals, the approval of SBS Technologies' shareholders, and other customary conditions, is anticipated to close in the third quarter of 2006.