ZEVEX Completes Acquisition of Aborn Electronics.SALT LAKE CITY--(BW HealthWire)--Jan. 6, 1999--ZEVEX International, 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 NM:ZVXI) today announced that the Company has completed its acquisition of Aborn Electronics, Inc., a privately held manufacturer and developer of optical sensors and custom computer chips used in both medical and industrial devices. The Company previously announced a binding letter of intent related to this agreement on November 6, 1998. Consideration for the transaction is a maximum of $5.1 million and consists of cash, convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and an earn-out based on certain one-year sales and pre-tax earnings goals. ZEVEX completed this transaction on December 31, 1998. For the 12 months ended December 31, 1998, Aborn's sales were approximately $1.3 million. This acquisition is expected to be accretive to ZEVEX earnings in 1999. Aborn Electronics will maintain operations in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. and will operate as a division of ZEVEX under its current name. A multi-year employment agreement has been signed with Aborn's president and no lay-offs at Aborn are expected as a result of this transaction. Aborn's products include fiber optic links, integrated optoisolators, high-speed sensor integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. , custom chips, application specific integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for (ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. ) chips and solid state relays A relay that contains no mechanical parts. All switching mechanisms are semiconductor or thin film components. . Medical applications for these technology products include diagnostic and therapeutic equipment, such as blood analyzers and dialysis machines. "The acquisition of Aborn Electronics is of strategic importance to ZEVEX as it expands our contract design and manufacturing product offering, and complements our long-standing capabilities with ultrasonic devices," said Dean G. Constantine, chief executive officer of ZEVEX. "In addition, Aborn and ZEVEX share several customers, and this combination will allow us to serve them more efficiently." In commenting on the sale of the company he founded, Vijay Lumba, president of Aborn Electronics stated, "While Aborn has successfully developed a strong customer base for our proprietary technology, we firmly believe that partnering with ZEVEX will provide the resources to maximize Aborn's growth potential. I look forward to joining the ZEVEX management team and serving as the division president of Aborn Electronics." ZEVEX designs and manufactures advanced medical devices including surgical systems, device components and sensors for medical technology companies. The company also designs, manufactures and markets its own medical devices using proprietary technologies. For more information, please visit the company's Internet site at www.zevex.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties regarding ZEVEX International's operations and future results. Please see the Company's filings with the Securities and Exchange Commission including, without limitation, the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Qs, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. |
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