Power-One Announces Agreement to Acquire HC Power

February 24, 2000 by Jeff Shepard

Power-One Inc. (Camarillo, CA) recently announced that it has entered into a definitive agreement to acquire HC Power Inc. (Irvine, CA). HC Power is a supplier of power systems for telecommunications and internet service-providers and OEM equipment manufacturers.

Power-One has agreed to acquire HC Power in a stock-for-stock transaction in which Power-One will issue approximately 2.1 million shares of Power-One stock. Power-One plans for the transaction to be accounted for as a pooling of interests, which is expected to be accretive in 2000.

"The acquisition of HC Power expands the reach of Power-One to take full advantage of the rapid-growth in the worldwide Internet, telephony and data markets," said Bill Yeates, president and COO of Power-One. "I've enjoyed a long-term career in the telecommunications industry and I am truly impressed by HC Power's products and their potential for growth. HC Power's high-density products consume less space than traditional solutions for telecommunications and Internet-service providers. In addition, installation is easy compared to most of the products I have seen, which provides customers with a competitive-speed advantage in offering new service. I'm very excited about the opportunities that will result from this transaction. From subscriber-home-office to central-office, Power-One can power any network device."

Wally Hersom, president of HC Power said, "Our company has an exceptional reputation for designing, engineering and delivering unique high-power and very-high-power systems. Our newest power systems are currently driving several types of major fiber-backbone telecommunication networks supporting Internet infra-structures. The explosion of the Internet wireless communications and the datacom industries continue to create exceptional expansion opportunities. Now that we have the strength of Power-One behind us, we can approach many global projects, especially in Europe, that were beyond our reach before. Power-One's manufacturing capabilities and international presence are a perfect complement to our engineering capabilities and high-power technologies."