Applied Cellular Technology announces agreement to acquire ATI Communications.NIXA, Mo.--(BUSINESS WIRE)--June 11, 1996--Applied Cellular Technology Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACTC ACTC Apple Certified Technical Coordinator ACTC Almaden Cycle Touring Club ACTC Associated Colleges of the Twin Cities ACTC All Ceylon Tamil Congress (Sri Lanka) ACTC Association Canadienne de Télévision par Câble ) announced today that it has entered into an agreement to acquire ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. Communications of Bethel Park, Pa. ATI Communications, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , is one of the largest independent retailers of cellular telephones in the U.S. with an installed base of over 250,000. The combined sales of the two companies upon completion of the acquisition is estimated by management to exceed $40 million on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Terms of the agreement were not disclosed. ATI Communications Inc., founded in November 1984 by Vincent A. LoCastro, is a specialty retailer of cellular phones and telephone interconnect equipment serving Pennsylvania, Northern Virginia, and Maryland markets. Ranked as one of the largest U.S. full-service interconnect communications companies, ATI has more than 600 employees and 30 retail outlets. The company is a vendor for Motorola, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , Uniden, and Nokia phone products. In addition, ATI provides interconnect telephone systems manufactured by Toshiba and Telrad which are fully digital. Richard J. Sullivan, chief executive officer and chairman of Applied Cellular Technology, commented: "This acquisition upon completion, which is expected in July, will certainly support our earnings estimate of 40 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in 1996 vs. 14 cents in the previous year. Sales of the combined two companies should approach in excess of $47 million on an annualized basis compared to our previous annualized estimate of $10 million. ATI Communications management and employees have an outstanding track record of service and profitability which will further be accelerated by combining the two entities. Applied's shareholders will be quite fortunate to have the current management of ATI retained to continue with the successful growth and market expansion currently underway." CONTACT: REOVEST Inc. Bob Oberndorf, 303/642-0073; 303/642-0754 (fax) |
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