SBS Technologies, Inc. Acquires Logical Design Group, Inc.
Opens New I/O, CPU Product Markets
In a move designed to bolster its presence in the industrial computing marketplace, SBS Technologies, Inc. ("SBS") (Nasdaq:SBSE) today announced that Logical Design Group, Inc. ("LDG"), a Raleigh, N.C. based designer and manufacturer of Intel-based VME Central Processing Unit boards, has become a wholly-owned subsidiary of SBS. Under the terms of the agreement -- which will be accounted for as a pooling of interests -- LDG shareholders will exchange all outstanding shares of LDG stock for 200,000 shares of SBS stock. After the pooling, LDG's former owners and employees will become SBS employees, thereby providing continuity of production, marketing and management. "Joining forces with a company that develops high-quality products complementary to our own is a tremendous opportunity for SBS," said Chris Amenson, president of SBS. "Our goal is to provide LDG with additional marketing, financial and technical support in an effort to increase sales. LDG opens the gates for us to compete in one of the largest segments of the embedded market." LDG has current annual revenues of approximately $4 million. LDG's Intel-based VME CPU boards enable embedded computer systems designers to take advantage of high performance integrated circuits and the vast library of software developed for the huge desktop PC market. LDG's boards also provide an ideal platform for products manufactured by GreenSpring Computers, Inc., a subsidiary of SBS that designs and manufactures small circuit boards, called Industry Packs, with subsystem functions intended to plug onto computer processor boards. "Published third-party research estimates the total market for Intel-based, VME processor boards like LDG's at more than $100 million in 1996, and describes the market as one of the fastest growing segments of the embedded computer processor board market," said Ken Boyette, president and founder of LDG. "We believe that LDG, as a subsidiary of SBS, will be able to more aggressively pursue this rapidly growing market," observed Mr. Amenson.