One Stop Systems Signs Agreement to Acquire Concept Development
Escondido, Calif. and Irvine, Calif., August 28, 2018 – One Stop Systems, Inc. (OSS), a leader in specialized high-performance computers, has signed a definitive agreement to acquire Concept Development, Inc. (CDI).
CDI specializes in the design and manufacture of specialized high-performance in-flight entertainment systems for commercial aircraft. CDI’s capabilities include electrical, mechanical and software design as well as extensive experience in test and certifications required for airborne systems.
The companies expect the synergies of the combined businesses to enhance the capabilities of their engineering, manufacturing and customer support, as well as dramatically broaden their market reach.
Key benefits to OSS include:
- Access to in-flight entertainment market and CDI customers
- Addition of technical expertise in design and manufacturing airborne equipment
- Significant existing OEM design-ins and new opportunities
- Adds $4 million to $6 million in projected annual revenue
- Profitable operations, with 38%-42% gross margin
- Primarily stock transaction: ~$4.9 million in stock and $1.0 million in cash
"This strategic acquisition of CDI brings together two innovative companies that focus on specialized high-performance computing, with highly complementary technologies and skill sets,” said Steve Cooper, OSS CEO. "CDI has broad experience designing and delivering high-performance systems for the aerospace and in-flight entertainment markets, which complements OSS’ capabilities in designing and manufacturing specialized high-performance computing products for rugged airborne environments, media and entertainment. Together, we have more capable resources for bringing high-performance computing to the in-flight entertainment market and others, while offering a greater value proposition to our combined customer base.”
The acquisition is expected to be completed before the end of the third quarter. Further details are available in the Form 8-K OSS has filed with the U.S. Securities and Exchange Commission which is accessible from the investor section on the company’s website.
About Concept Development
Irvine, California-based Concept Development, Inc. specializes in the design and manufacturing of custom high-performance computing systems for airborne in-flight entertainment systems. CDI provides these advanced custom solutions for global enterprise customers. For more information, go to www.cdvinc.com.
About One Stop Systems
One Stop Systems, Inc. (OSS) designs and manufactures specialized high-performance compute accelerators, flash storage arrays and customized servers for deep learning, AI, defense, finance and entertainment applications. OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe flash cards to build award-winning systems, including many industry firsts, for OEMs and government customers. The company’s innovative hardware and Ion Accelerator Software offers exceptional performance and unparalleled scalability. OSS products are available directly, through global distributors, or via its SkyScale cloud services. For more information, go to www.onestopsystems.com.
Media Contact:
Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883
Investor Relations:
Ronald Both or Grant Stude
CMA
Tel (949) 432-7557
