[thinnews] Neoware to Acquire TeleVideo's Thin Client Business
- From: "Jim Kenzig http://thethin.net" <jimkenz@xxxxxxxxxxxxxx>
- To: Thinnews <thinnews@xxxxxxxxxxxxx>, thin@xxxxxxxxxxxxx
- Date: Tue, 18 Jan 2005 16:20:49 -0800 (PST)
Neoware Grows its Leadership Position in the Thin Client Market by Acquiring
the Fourth Largest U.S. Thin Client Provider
KING OF PRUSSIA, Pa. and SAN JOSE, Calif., Jan. 12, 2005 -- Neoware Systems
(Nasdaq:NWRE) and TeleVideo, Inc. (Pink Sheets:TELV), today announced that the
companies have entered into a Definitive Agreement under which Neoware will
acquire TeleVideo's thin client business including all thin client assets,
certain contract obligations, a trademark license, product brands, customer
lists, customer contracts and non-competition agreements for $5 million in cash
plus a potential earn-out based upon performance. In addition, effective
immediately, TeleVideo has retained Neoware as its exclusive distributor and
sales agent. Starting today, all TeleVideo thin client products are available
to TeleVideo customers directly from Neoware. Subject to regulatory approval,
the acquisition is expected to close in March 2005.
TeleVideo, Inc. is a publicly held company specializing in the development and
manufacturing of Windows-based and network terminals. Founded in 1975,
TeleVideo established itself as a leading supplier in the video display
terminal industry. The company pioneered a new generation of computer terminals
with the introduction of its first "smart" terminals, based on the Intel
microprocessor, at a time when dumb terminals were the industry standard.
Recently ranked by IDC as the fourth largest thin client provider in the U.S.,
TeleVideo has developed a niche as the leading provider of all-in-one,
integrated, flat-panel, thin clients, including one of the industry's only 17"
flat panel thin client models. Sales of TeleVideo thin clients were
approximately $7 million in 2004.
The acquisition of TeleVideo's thin client business increases Neoware's market
share and distribution channels, and broadens Neoware's product offerings in
the thin client appliance market. Additionally, Neoware has agreed to retain
TeleVideo as its sales agent in Korea, opening a new geographic market for the
Company. TeleVideo thin client products will continue to be available through
the existing channel of TeleVideo authorized distributors and resellers.
"We are pleased to partner with Neoware to provide our customers with superior
quality and service," said Dr. K. Philip Hwang, Chairman and Chief Executive
Officer of TeleVideo, Inc. "TeleVideo's products and customers will benefit
greatly as a result of our partnership with Neoware."
"With this acquisition, Neoware further enhances our market share, while taking
advantage of economies of scale and synergies between the two organizations to
enhance operating margins. Simultaneously, we continue to broaden our product
line with innovative new products," stated Michael Kantrowitz, Chairman and CEO
of Neoware. "TeleVideo and Neoware customers are assured of continued
development, quality products and superior service from a financially strong
company that is committed to leadership in thin client appliance computing."
About Neoware
Neoware's software, services, and thin client appliances make computing more
secure, manageable, reliable and affordable by enabling global enterprises to
fully leverage server-based computing. By incorporating open, standards-based
technologies and eliminating the obsolescence that is built into standard PC
architectures, Neoware provides enterprises with increased flexibility and
choice, as well as lower up-front and total costs.
Neoware's software products enable enterprises to gain control of their
desktops, and to integrate mainframe, midrange, UNIX and Linux applications
with Windows(r) and the web. Neoware's thin client appliances enable
enterprises to run applications on servers, and display them across wired or
wireless networks on secure, managed, reliable appliances that cost as little
as one fourth the price of today's typical business PC. Neoware services enable
corporations to benefit from server-based computing with training and
end-to-end support.
Neoware's products are available worldwide from IBM, as well as from select,
knowledgeable resellers. More information about Neoware can be found on the Web
at http://www.neoware.com or via email at invest@xxxxxxxxxxxx Neoware is based
in King of Prussia, PA.
About TeleVideo
A pioneering Silicon Valley company, TeleVideo, Inc. began in 1975 as the
innovator and market leader of smart text terminals. Today, TeleVideo continues
to innovate by developing and manufacturing Windows-Based Thin Client hardware
and software solutions. Designed for corporate and vertical IT professionals
and end-users, TeleVideo's family of TeleCLIENT products allows for secured,
manageable and cost-effective network computing in healthcare, business,
government and more. For more information, please visit www.televideo.com .
Neoware is a registered trademark of Neoware Systems, Inc. All other names
products and services are trademarks or registered trademarks of their
respective holders.
Neoware Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
regarding: the consummation of the acquisition of TeleVideo's thin client
business; the increase in our market share and distribution channels;
anticipated economies of scale, synergies and enhanced operating margins as a
result of the acquisition; our broadened product offerings and geographic
market; our financial strength; our continued development and support of
quality products; our commitment to hold a leadership position in the thin
client segment of the PC market. These forward-looking statements involve risks
and uncertainties. Factors that could cause actual results to differ materially
from those predicted in any such forward-looking statement include: our ability
to consummate the acquisition and successfully integrate the TeleVideo thin
client business; our timely development and customers' acceptance of our produ
cts,
including the former TeleVideo products; our ability to continue to lower our
costs; pricing pressures; rapid technological changes in the industry; growth
of the thin client computing segment of the PC market; growth of the host
access software market; increased competition; our ability to attract and
retain qualified personnel; our ability to identify and successfully consummate
and integrate future acquisitions; adverse changes in customer order patterns;
adverse changes in general economic conditions in the U.S. and internationally,
risks associated with foreign operations and political and economic
uncertainties associated with current world events. These and other risks are
detailed from time to time in Neoware's periodic reports filed with the
Securities and Exchange Commission, including, but not limited to, its report
on Form 10-K for its fiscal year ended June 30, 2004 and Form 10-Q for the
quarter ended September 30, 2004.
TeleVideo Forward-Looking Statements
This press release includes forward-looking statements, which are made pursuant
to the safe-harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are typically indicated by the presence of
words such as "expect," "anticipate," "believe," "intend," "may," "predict,"
"will be," and other similar expressions. These forward-looking statements
cover, among other items, statements regarding the consummation of any
transaction. Any forward-looking statements are not guarantees of future
performance and actual results could differ materially from those anticipated
as a result of certain risks and uncertainties, some of which are beyond the
control of the Company. A description of the risk factors affecting the
Company's business can be found in TeleVideo, Inc.'s Safe Harbor Compliance
Statement included as Exhibit 99.1 to its Annual Report on Form 10-K for the
fiscal year ended October 31, 2003.
CONTACT: Neoware Systems, Inc. Keith Schneck Chief Financial
Officer (610) 277-8300, ext. 1072 kschneck@xxxxxxxxxxx
TeleVideo, Inc. John Lee Product Marketing Manager
(408) 955-7406 jlee@xxxxxxxxxxxxx
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