Issue #2003 - 26
ACQUISITIONS, MERGERS &
Golden Gate Capital Acquires Itronix - a Rugged Computer Vendor
SPOKANE, Wash.-September 18, 2003-Itronix Corporation, a leading developer of wireless, rugged mobile computing systems, announced today that it is being acquired by Golden Gate Capital, a $700 million private equity firm dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. Partnering with Golden Gate Capital enables Itronix to become a financially strong, independent private company and to focus exclusively on building its market leadership position in wireless rugged computing for enterprise applications. As a newly independent company, Itronix will remain committed to outstanding customer service and support, superior technology innovation, and profitable growth. Golden Gate Capital purchased Itronix from Acterna Corporation for $40 million and the assumption of liabilities. The transaction is expected to be completed within the next two weeks.
"Today's acquisition news is extremely positive and promising for all Itronix stakeholders -whether you are an Itronix customer, employee, supplier, or business partner," said Tom Turner, president and CEO of Itronix. "The 'new' Itronix is a privately-held, well capitalized company with great customers, best-in-class wireless, rugged products and services, and an outstanding team of people at the management level and throughout the organization. I am confident that our independent status will lead to even greater opportunity and growth for Itronix. We will continue to focus on our customers, innovate in everything we do, grow our market share and mindshare, and manage the company for continued profitable growth."
Golden Gate Capital purchased Itronix from its parent company, Acterna Corporation, which is the world's second largest communications test and measurement company. In accordance with Acterna's reorganization plan under Chapter 11 protection, the sale was conducted pursuant to section 363 of the U.S. Bankruptcy Code and was approved today by the U.S. Bankruptcy Court for the Southern District of New York.
"We are excited to be adding a company the caliber of Itronix to our portfolio," said John Knoll, principal of Golden Gate Capital. "Itronix already has a solid foundation for ongoing success and impressive growth. In addition to its outstanding management team, award-winning products and services, and impressive customer base, Itronix now has our financial support to help the company achieve its growth objectives and further enhance the company's value."
The "New" Itronix - Setting the Stage for the Next Phase of Growth
With customers that include hundreds of Global 2000 companies and world recognized organizations, such as Sears, U.S. Army, U.S. Air Force, U.S. Navy, U.S. Marines, FBI, BellSouth, Verizon, and Florida Power & Light, Itronix is one of the world's leading providers of wireless, rugged mobile computing solutions. According to recent research by Venture Development Corporation (VDC), Itronix is currently ranked the number one fully rugged notebook computer provider in Europe and number two in North America.
Given Itronix's substantial and impressive financial performance to date - growing revenues from $500,000 at its inception in 1992 to over $140 million today - the "new" Itronix will be even better positioned to maximize its track record of success, growth and profitability. In addition to staying focused on its core customer values, the "new" Itronix will invest in new product development, focus on key implementation services, and strategically grow its market share in specific vertical markets throughout the world.
Operating as an independent company, Itronix worldwide headquarters will remain in Spokane, Washington, and its European operations will remain unchanged with offices located in Coventry, U.K., Frankfurt, Germany, and Paris, France. In addition, Itronix's seasoned executive management team, led by Tom Turner as president and CEO, will remain intact and will have the support of Golden Gate Capital's team of experienced management professionals.
"This is great news for Itronix and the rugged computing industry," said Tim Shea of Venture Development Corporation. "As an independent company, Itronix now has the opportunity to compete on its own merits and grow its position in the marketplace. Demand continues to soar for rugged computers - in fact, VDC forecasts that worldwide shipments for rugged mobile computers will grow from over $2.9 billion in 2002 to almost $4.8 billion in 2007. Contributing to this growth is increasing demand for ruggedized mobile solutions as tools for increasing productivity, improving customer service and improving profitability."
About Golden Gate Capital
Golden Gate Capital (www.goldengatecap.com) is a San Francisco-based private equity investment firm with approximately $700 million of capital under management.
About Itronix Corporation
Itronix is a developer of wireless, rugged computing solutions for mobile workers, which distinguishes itself in the market through its superior implementation capabilities and supporting services. Itronix has a full range of wireless field computing systems, from handhelds, to laptops to tablet
for more info, go to http://www.itronix.com
MobileInfo Comments and Advisory: Among
several niche vendors, Itronix has established itself as a leading
vendor for ruggedized notebooks, tablets and handhelds. While Symbol
is a clear leader in application-specific ruggedized devices,
Itronix is relying on general-purpose ruggedized hardware. This
acquisition confirms maturing of ruggedized device market for
industrial and field service applications. VDC forecasts are
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