Avocent to buy California firm

Cyclades makes Linux-based servers; $90 million price tag

Friday, January 27, 2006

From staff reports
Huntsville Times

Huntsville-based Avocent Corp. has signed an agreement to acquire Cyclades Corp., a privately held California company, for $90 million, plus the assumption of debt and certain transaction costs.

The acquisition of Cyclades, which had revenue of about $60 million in 2005, is set to close in the first quarter, Avocent said. California-based Cyclades makes Linux-based servers, switches and network management appliances.

Avocent makes tools for data center managers and information technology specialists that enable them to monitor, repair and control their networks from a remote location. Last week, Avocent reported 2005 earnings of $48.3 million on sales of $369 million.

The company expects the purchase to add to earnings this year. Avocent said Cyclades has a strong international presence and significant business with Fortune 100 companies.

"We expect the acquisition to introduce us to a significant number of new customers," Avocent Chairman and CEO John Cooper said.

Avocent stock, traded on the Nasdaq, closed up 99 cents at $32.60 on Thursday.




Avocent to buy California firm Cyclades makes Linux-based servers; $90 million price tag Friday, January 27, 2006 From staff reports Huntsville Times Huntsville-based Avocent Corp. has signed an agreement to acquire Cyclades Corp., a privately held California company, for $90 million, plus the assumption of debt and certain transaction costs. The acquisition of Cyclades, which had revenue of about $60 million in 2005, is set to close in the first quarter, Avocent said. California-based Cyclades makes Linux-based servers, switches and network management appliances. Avocent makes tools for data center managers and information technology specialists that enable them to monitor, repair and control their networks from a remote location. Last week, Avocent reported 2005 earnings of $48.3 million on sales of $369 million. The company expects the purchase to add to earnings this year. Avocent said Cyclades has a strong international presence and significant business with Fortune 100 companies. "We expect the acquisition to introduce us to a significant number of new customers," Avocent Chairman and CEO John Cooper said. Avocent stock, traded on the Nasdaq, closed up 99 cents at $32.60 on Thursday. © 2006 The Huntsville Times © 2006 al.com All Rights Reserved.