OSA, based in San Jose, to remain independent vendor
04/08/04
Huntsville-based Avocent Corp. has completed its $100 million acquisition of OSA Technologies Inc., a California-based firm which makes software compatible with Avocent's technology.
The deal includes $52 million in cash and the awarding of 1.3 million shares of Avocent stock, valued at $48 million.
The deal was announced March 29 and includes the addition of 39 OSA employees to Avocent. OSA is based in San Jose, Calif., but more than 80 percent of its work force is based in Asia. The company has offices in Shanghai and Taipei, Taiwan.
OSA will remain an independent software vendor, owned by Avocent, but not integrated into the Huntsville company.
Avocent makes products that allow a remote computer user to control the keyboard, video and mouse functions of computers at other locations. OSA makes software and related products that allows a computer user to troubleshoot and perform other computer functions at remote locations, even if those machines have lost power.
In announcing the deal, Avocent officials said it was part of a strategy aimed at broadening the company's reach into server and device management markets. Avocent products are primarily plug-in boxes, but over the past year the company has stressed its commitment to developing more "embedded" technologies, that can be included in the basic make-up of a computer.
John Cooper, Avocent's CEO, said the acquisition of OSA will accelerate the company's pursuit of embedded technologies.
Avocent stock, traded on the Nasdaq under the ticker symbol, "AVCT," was down 32 cents in late-morning trading today to $37.10.