Data Swaps Spur Tech Firm Merger.Seeking to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the market for digital content delivery, Westlake Westlake, city (1990 pop. 27,018), Cuyahoga co., NE Ohio, a suburb of Cleveland; inc. as a city 1956. A growing city, its various manufactures include ink and plastics. Village-based Medea Corp. has acquired Storage Concepts Inc. of Tustin Tustin (tŭs`tĭn), residential city (1990 pop. 50,689), Orange co., S Calif., part of the greater Los Angeles area; founded 1868, inc. 1927. Plastics, furniture, computers, and electronic equipment are manufactured. in a stock-swap deal. The deal, the value of which was not disclosed, brings together $25 million (annual revenues) Medea with $8 million Storage Concepts. The combined company wants to grow annual revenues to between $200 million and $300 million within five years by moving away from making content-storage hardware and expanding aggressively into content-delivery hardware. Medea's high-capacity components enable video editors, computer-game developers, animators Famous animators no longer living
To cause a security to sell at an artificial price. Although investment bankers are permitted to manipulate temporarily the stock they underwrite, most other forms of manipulation are illegal. their massive files. Medea's products have been used in the creation of dozens of television shows and movies, including "Red Planet" and the two upcoming sequels to "The Matrix." Now, the company will be making components that allow such files to be transferred from place to place, rather than merely stored in an individual's computer. "The content-delivery marketplace is much larger than the content-creation marketplace, and it requires much larger systems in terms of the storage capacities," said Roger Mabon, marketing director for Medea. "So we think we're going to see some substantial increases in revenues via sales to the delivery market." Storage Concepts, which also produces digital hardware used in medical imaging, military, government and security applications, will continue to operate out of its Tustin facility. "We have a direct sales channel that they wanted to take advantage of for their products," said Martin Bock Noun 1. bock - a very strong lager traditionally brewed in the fall and aged through the winter for consumption in the spring bock beer lager beer, lager - a general term for beer made with bottom fermenting yeast (usually by decoction mashing); originally , Storage Concepts' president, who has assumed that title at the combined company. Medea was founded in 1996 by Mabon's father, Stuart, who came out of retirement two years after selling his $400 million (annual revenues) Chatsworth disk drive firm, Micropolis Corp. He joined with several friends and business partners to invest an undisclosed sum in launching Medea, while venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. added another $1 million. Stuart Mabon remains chief executive of the combined company. Medea still needs another $10 million investment, said, company officials, adding that several venture capitalists are considering proposals. |
|
||||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion