Western Micro forges ahead with aggressive acquisition strategy, acquires assets of R&D Hardware Systems.CAMPBELL, Calif.--(BUSINESS WIRE)--Dec. 14, 1995--Western Micro 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 :WSTM WSTM White Sands Transverse Mercator ), a leading mid-range systems distributor, Thursday announced that it has reached an agreement in principle to acquire substantially all of the assets of R&D Hardware Systems Co., a distributor of IBM's RS/6000 and Unisys products based in Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , Colo. This acquisition is subject to the negotiation of a definitive agreement and final approval by the California Department of Corporations. In addition to the recently acquired International Parts Inc. on Nov. 18, this acquisition firmly establishes Western Micro as one of IBM's largest Managing Industry Remarketers (MIRs) and adds a strategic relationship with another mid-range solutions vendor, Unisys. The value of the transaction is approximately $1 million in cash, 125,000 shares of Western Micro common stock at closing, and an earn-out for up to an additional 142,500 shares over a two-year period. The purchase is expected to close in late December 1995 or early January 1996. "Western Micro's recent acquisitions aim to increase the sales of our key vendors while expanding our geographical presence," said Scott Munro, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Western Micro. "This is the second acquisition for Western Micro over the last 45 days, and both add significant revenue to our company on an accretive basis. R&D Hardware is currently on a run rate of more than $10 million, with an anticipated growth rate of over 30 percent for 1996." Western Micro also will enter into an agreement with one of R&D Hardware's largest VARs for the Hewlett-Packard, Unisys, Data General and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) solutions. This separate agreement is valued at approximately $7 million annually. "This transaction provides our resellers with access to a much wider range of mid-range product lines and the financial wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. and infrastructure associated with a much larger company," said Tony Jacobs, president of R&D Hardware Systems. "We have been impressed with Western Micro's innovative, value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. which are a necessity in today's competitive market." "The new relationship with Western Micro can only add value to R&D Hardware's extensive dealer network," said Guy Lammle, chairman of R&D Hardware Systems. R&D Hardware Systems has been in existence for more than 10 years and has always been a profitable entity experiencing strong growth since inception. The R&D Hardware Systems staff has outstanding experience and expertise in Unisys as a provider of UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). , BTOS (B Twenty OS) The Burroughs Corporation version of CTOS, named after the B20 workstation family that the operating system ran on. Over one million CTOS/BTOS systems have been sold worldwide by Unisys. See CTOS. BTOS - Convergent Technologies Operating System and CTOS (Convergent Technologies OS) An operating system that runs on Unisys' x86-based NGen and SuperGen series (formerly the B-series). It was originally developed by Convergent Technologies, which was acquired by Unisys. products and has been an MIR of IBM since 1991. Western Micro Technology is an innovative value-added distributor providing solutions sales and services to VARs, integrators and OEMs. Western Micro excels as the distributor of choice for the sophisticated, high-level VARs who insist on working with the best products supported by top-notch technical and marketing professionals. Leading worldwide manufacturers such as IBM, Hewlett-Packard, AT&T, Data General and Oracle have established strong business relationships with Western Micro. In turn, Western Micro provides its customers with the dedicated technical capabilities necessary to support these world-class product lines. -0- NOTE: Western Micro, Western Micro Technology Inc. and the Western Micro logo are registered trademarks of Western Micro Technology. All other products and company names are respective property of their prospective holders and should be treated as such. CONTACT: Western Micro Technology Inc. Scott Munro, 408/379-0177 or R&D Hardware Systems Kathy Cunningham, 719/590-8940 or Miller/Shandwick Marla Kertzman, 415/962-9550 |
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