SEG Client Microtest acquires Optical Media International
The acquisition of Optical Media International rounds-out Microtest’s CD networking product line and provides it with the ability to provide both CD-ROM and CD-R network access capabilities.
Publicly-traded Microtest is a leading worldwide manufacturer of diagnostic certification and connectivity products for Local Area Networks (LANs).
Optical Media International (OMI), a pioneer and a leading innovator in the CD-Recordable industry, introduced the first PC-based CD-ROM premastering system in 1986.
PRESS RELEASE OVERVIEW
Microtest Inc. Acquires Software Equity Group’s Client Optical Media International
PHOENIX–(BUSINESS WIRE) – June 6, 1995 – Microtest Inc. (NASDAQ:MTST), a leading developer, manufacturer and marketer of Local Area Network (LAN) cable management, diagnostic and connectivity products, Tuesday announced the completion of its acquisition of privately held Optical Media International (OMI), a pioneer in the CD-ROM and the CD-Recordable (CD-R) industry.
Microtest has acquired all of the outstanding capital stock of OMI for $4 million in cash and the assumption of OMI-related debt. The company has funded the transaction from currently available cash; thereby avoiding any equity dilution.
Microtest will record a charge of $5 million to $6 million in the second quarter of 1995, to account for the value of the research it will acquire from OMI, as well as all related expenses. As a result of this write-off, the company will not amortize any goodwill in connection with the transaction. OMI posted revenues of $6.0 million in fiscal 1994.
Microtest has achieved market leadership in the CD-ROM networking industry with 37 percent market share after only one year in the business, according to Frost & Sullivan, an independent industry analyst.
In addition, Frost & Sullivan estimates that CD-R unit sales will grow at a 40 percent compounded annual rate through the end of fiscal 1996. Microtest will develop networkable CD-R technology in the high customer demand areas such as records archiving, information transfer, computer data back-up and mass storage. The company expects OMI to be a positive contributor by the fourth quarter of 1995.
“This acquisition rounds-out our CD networking product line and provides Microtest with the ability to provide both CD-ROM and CD-R network access capabilities,” said Richard G. Meise, president and CEO of Microtest Inc. “We are now solidly positioned as a leading competitor in the total CD networking market and will aggressively pursue market leadership by providing a total business solution to our customers.”
Optical Media International (OMI), a pioneer and a leading innovator in the CD-Recordable industry, introduced the first PC-based CD-ROM premastering system in 1986. The company also developed the first PC-based multiformat CD recording system, the first Macintosh-based CD premastering and recording systems and the first CD-ROM XA premastering system.
Founded in 1984, Microtest is a leading worldwide manufacturer of diagnostic certification and connectivity products for Local Area Networks (LANs). Microtest’s mission is to make information technology easy to apply. The company has pioneered networking products, such as CABLE SCANNER(TM), Compas(TM), PentaScanner(TM) and DiscPort(TM).