TDK USA Agrees to Acquire Innoveta Technologies
TDK USA Corp. (Garden City, NY), a subsidiary of TDK Corp. (Garden City, NY), announced that it has entered into an agreement and plan of merger with Innoveta Technologies Inc. (Plano, TX) and certain other parties. Subject to certain conditions specified in the merger agreement, TDK USA has agreed to acquire 100-percent ownership of Innoveta by means of a merger of TDK USA's wholly owned subsidiary with and into Innoveta. TDK USA has agreed, subject to certain specified conditions, to pay an aggregate amount of up to $18,500,000 in cash to the holders of Innoveta's capital stock and stock options, of which $2,500,000 is contingent upon attainment of specified revenue thresholds over the three years following the closing.
Upon the consummation of the merger, which is anticipated to occur shortly upon satisfaction of certain conditions, Innoveta will become a wholly owned subsidiary of TDK USA and be renamed TDK Innoveta Inc. In September of 2002, TDK and Innoveta entered into a strategic alliance that enabled TDK to co-label and sell Innoveta’s dc/dc converters in Japan.
"TDK is delighted to extend and deepen our successful relationship with Innoveta through this acquisition. TDK’s and Innoveta’s shared philosophy toward quality and customer service proved to be a perfect match. TDK’s wide range of power products from ac/dc to dc/ac converters and Innoveta’s vast experience in the distributed power architecture market will allow us to become the market leader in a very competitive and rapidly changing power industry," said Yukio Harada, corporate officer and general manager of TDK's Power Systems Business Group.
"Innoveta is very enthusiastic about continuing to expand our technology and product line as part of TDK, and proud to join such a well-known and globally respected company," said Victor Lee, president and CEO of Innoveta. "By combining our converter innovations with TDK’s world class materials, ferrite and component technologies, we see the opportunity for huge technology dividends. Expect to see even more fantastic products from TDK Innoveta."