Continental Circuits Corp. signs letter of intent to acquire Sigma Circuits Inc.PHOENIX--(BUSINESS WIRE)--Sept. 30, 1996--Continental Circuits Corp. (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 :CCIR See ITU. ) and Sigma Circuits Inc. (NASDAQ:SIGA SIGA Saskatchewan Indian Gaming Authority SIGA Simplified Improved Gaussian Approximation SIGA Special Interest Group in Andrology (ESHRE) SIGA Silizium, Galvanik Und Abformung SIGA Sunshine in Government Act of 1976 ) Monday jointly announced that they have signed a letter of intent whereby Continental Circuits will acquire all the outstanding shares of Sigma Circuits in exchange for Continental Circuits stock. Under the terms of the exchange, Sigma shareholders would receive 0.70 shares of Continental Circuits stock for each share of Sigma stock. For the fiscal year ended June 30, 1996, Sigma reported revenues of $87.7 million while Continental reported revenues of $108.3 million for its fiscal year ended July 31, 1996. Located in Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif., Sigma Circuits is a leading quick-turn manufacturer of electronic interconnect products including multilayer printed circuit boards (PCBs), backplane assemblies and flexible circuits. Continental Circuits is a leading high-volume, high-technology manufacturer of complex, multilayer circuit boards. Each company's products are used by OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and contract manufacturing customers engaged in the data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , telecommunications, computer, peripherals, instrumentation and medical segments of the electronics industry. Drawing from a consolidated, complementary customer base, the combined entity will be well positioned to serve as a "one-stop" provider of electronic interconnect products and services, offering both quick-turn and volume PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. production, flexible circuits, backplane assemblies, sub-assemblies, and complete systems. The combined entity is also expected to benefit from enhanced technological, production and cost synergies. Subject to the execution of a definitive agreement and regulatory and shareholder approval, the acquisition is scheduled for completion by early 1997. Commenting on the pending acquisition, Continental Circuits Chairman and Chief Executive Officer Frederick G. McNamee, said: "We are very excited about the potential for combining these two companies in a way that can enhance our product and service offerings to better support our customers' time-to-market and time-to-volume needs across multiple electronic interconnect product lines. "Additionally, we would gain a major presence in Silicon Valley with the added benefit of a sizeable and capable sales staff." B. Kevin Kelly Kevin Kelly may refer to:
"We believe this combination will strengthen our ability to meet the comprehensive electronic interconnect needs of our customers." Continental Circuits manufactures complex, multilayer circuit boards used in sophisticated electronic equipment produced by leaders in the computer, communications, instrumentation and industrial controls industries. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This news release contains forward-looking statements that involve risks and uncertainties and actual results may differ materially from the above forward-looking statements due to a number of important factors, including but not limited to, the ability of management to integrate the two companies successfully, the timing and volume of orders, product mix and capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. . These factors are fully discussed in the companies' regular financial filings with the Securities and Exchange Commission. CONTACT: Continental Circuits Corp. Frederick G. McNamee/Joseph G. Andersen, 602/268-3461 or Silverman Heller Associates (for Continental Circuits) Lou Alkana, 310/208-2550 or Sigma Circuits Inc. B. Kevin Kelly/Philip Bushnell, 408/727-9169 or Financial Relations Board, San Francisco, 415/986-1591 (for Sigma Circuits) Lisa Needham (general information) Susan Caulton Dooley (analyst) |
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