Lantronix acquires embedded technology software maker

As part of its ongoing strategy to deliver a total networking solution, Lantronix (Irvine, CA) announced a definitive agreement to acquire privately held United States Software Company (Hillsboro, OR), a leading software solutions provider for embedded technology applications.

According to Fred Thiel, CEO of Lantronix, the acquisition of US Software enables core elements of Device Server Technology to now run on the most popular embedded hardware platforms, opening up new opportunities for Lantronix and its customers.

Lantronix's Device Server Technology adds intelligence to almost any device — including those on the factory floor — enabling them to be accessed, managed, controlled, reprogrammed, and configured or reconfigured over the Internet or other networks using standard protocols for connectivity, including fiber optics, Ethernet, Modbus, and wireless.

"The flexibility of US Software's Real-Time Operating System (RTOS), protocols, and applications will enable Lantronix to rapidly fulfill the needs of our diverse customer base by delivering complete network enabling technology in less time on a wide variety of embedded hardware solutions," Thiel says.

"Additionally, US Software's strong presence in key markets and relationships with strategic customers will facilitate the expansion of our customer base," Thiel adds. "This merger fits with Lantronix's strategy of being a leader in embedded network connectivity."

Under the terms of the agreement, Lantronix common stock and cash worth an aggregate value of approximately $7 million will be exchanged for all outstanding shares and options of US Software. Lantronix will also issue up to an aggregate of approximately $9.75 million of its common stock to the shareholders of US Software if certain revenue and profit milestones related to the US Software business are met through June 30, 2004.

This acquisition will be accounted for as a purchase and is expected to be completed prior to the end of 2000. In connection with the acquisition, Lantronix expects an operating profit gain of approximately $0.01 per share for fiscal 2001. Also under the terms of the agreement, all employees of US Software will remain with the company.

For more information on how to bring Ethernet to your factory floor with Lantronix's solutions, stop by automation.lantronix.com.

Edited by Jim Lardear
Managing Editor, PlantAutomation.com

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