Avocent Completes LANDesk Acquisition
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HUNTSVILLE, Ala.-- Sept. 1, 2006--Avocent Corporation (NASDAQ:AVCT) announced today it completed the acquisition of LANDesk Group Limited, a privately-held corporation, on August 31, 2006. LANDesk was acquired for an initial consideration of approximately $400 million, including $200 million in Avocent stock and $200 million in cash, plus assumed unvested employee stock options.
"The LANDesk acquisition will provide Avocent with immediate diversification of our revenue base by adding software for the centralized management and protection of information technology assets with an especially strong suite of desktop and server change, configuration, security management and administration tools. It also provides us with substantial opportunity to broaden our product offerings in the future," stated John R. Cooper, Avocent's chairman and chief executive officer.
The cash portion of the initial acquisition consideration was funded with available cash of $50 million and additional borrowings of $150 million under Avocent's line of credit. The stock portion of the initial consideration consists of approximately 7.1 million Avocent common shares, including approximately 5.0 million shares repurchased from May through August 2006 for approximately $121 million. Avocent also expects to issue approximately 85,000 restricted stock units to certain LANDesk employees with a total value of approximately $2.6 million which will vest through 2008.
About Avocent Corporation
Avocent Corporation is the leading supplier of connectivity solutions for enterprise data centers, branch offices, and small to medium size businesses worldwide. Branded and OEM products include remote and local access solutions for switching, serial console, power extension, intelligent platform management interface (IPMI), mobile and video display management solutions. Through the acquisition of LANDesk Corporation, the Company also is a leading provider of systems, security, and process management solutions for desktops, servers and mobile devices across the enterprise. Additional information is available at: www.avocent.com
Contacts
Edward H. Blankenship,
Avocent Corporation,
256-217-1301
