GARDEN CITY, N.Y. & PLANO, Texas--(BUSINESS WIRE)--March 3, 2003--
TDK U.S.A. Corporation ("TDK USA"), a subsidiary of TDK Corporation
(NYSE:
TDK), announced that it has entered into an Agreement and Plan
of Merger (the "Merger Agreement"), with Innoveta Technologies, Inc.
("Innoveta") and certain other parties named therein. Subject to
certain conditions specified in the Merger Agreement, TDK USA has
agreed to acquire 100% ownership of Innoveta by means of a merger of
TDK USA's wholly owned subsidiary with and into Innoveta (the
"Merger"). TDK USA has agreed, subject to certain specified
conditions, to pay an aggregate amount of up to $18,500,000 in cash to
the holders of Innoveta's capital stock and stock options, of which
$2,500,000 is contingent upon attainment of specified revenue
thresholds over the three years following the closing.
Upon the consummation of the Merger, which is anticipated to occur
shortly upon satisfaction of certain conditions, Innoveta will become
a wholly owned subsidiary of TDK USA and be renamed TDK Innoveta Inc.
TDK, a world leader in electronics, serves a broad customer base
including leading companies in telecommunications, industrial,
automotive, and consumer products. Its power product portfolio covers
a range of AC-DC, DC-AC and DC-DC converters in a variety of
high-density, customized packages. Back in September of 2002, TDK and
Innoveta entered into a strategic alliance that enabled TDK to
co-label and sell Innoveta's DC-DC converters in Japan.
Innoveta, founded in November 2000, offers a complete range of
standard footprint DC-DC converters to a broad customer base in the
wireless, telecommunications, storage and data networking markets.
Innoveta products are recognized for their benchmark efficiency,
advanced thermal management, and robust design, all instrumental in
assuring cool operation and high reliability.
"TDK is delighted to extend and deepen our successful relationship
with Innoveta through this acquisition. TDK's and Innoveta's shared
philosophy toward quality and customer service proved to be a perfect
match. TDK's wide range of power products from AC-DC to DC-AC
converters and Innoveta's vast experience in the distributed power
architecture market will allow us to become the market leader in a
very competitive and rapidly changing power industry," said Yukio
Harada, Corporate Officer and General Manager of TDK's Power Systems
Business Group.
"Innoveta is very enthusiastic about continuing to expand our
technology and product line as part of TDK, and proud to join such a
well-known and globally respected company," said Victor Lee, President
and CEO of Innoveta. "By combining our converter innovations with
TDK's world class materials, ferrite and component technologies, we
see the opportunity for huge technology dividends. Expect to see even
more fantastic products from TDK Innoveta."
About TDK Corporation
TDK Corporation (NYSE:
TDK) is a leading global electronics
company based in Japan. It was established in 1935 to commercialize
"ferrite," a key material in electronics and magnetics. TDK's current
product line includes ferrite materials, electronic components and
ICs, wireless computer networking products, magnetic heads for HDD,
digital recording hardware and advanced digital recording media. Net
sales in FY2002 were US$4.3 billion. For more information about TDK,
please visit
www.tdk.com.
About Innoveta Technologies
Innoveta Technologies, Inc. continues to set new benchmarks for
technological innovation and business efficiency in the development,
manufacturing and support of high density power products. Innoveta
DC-DC converters combine flexibility, reliability, and the highest
usable power density for telecommunications, data communications and
computer applications. For information, please call toll free at
1-877-498-0099 or visit
www.innoveta.com.
CONTACT: TDK Corporation
Nobuyuki Koike, 81-3-5201-7102
Email Contact
or
TDK U.S.A. Corporation
Jeffrey Williams, 516/535-2882
Email Contact
www.tdk.com