Xtech Embedded Computers Acquires the Assets of Teknor Industrial Computers

Xtech Embedded Computers announced a definitive agreement to acquire the assets of Teknor Industrial Computers of Boisbriand, QC, Canada. Teknor is a leading manufacturer of industrial single board computers and systems supplying major OEMs and systems integrators in the United States, Europe and Asia.

Under the terms of the agreement, Xtech (Blainville, Quebec) will acquire all of the assets of Teknor's industrial computers operations including the company name and related brand names, but excluding the Saco Smart Vision Systems division. The acquisition is subject to shareholder approval and is expected to close on or about June 30.

The Teknor acquisition underscores Xtech's commitment to creating an integrated industrial computer manufacturing entity capable of supplying leading-edge industrial computer technology to global OEMs. Xtech will now be able to provide manufacturing resources and systems integration services in both North America and Europe, thereby allowing customers to improve their time-to-market equation in today's competitive environment.

"This acquisition represents a strategic move in our goal to become the leading provider of industrial computer systems and technology in the world," says Pierre McMaster, president and CEO of Xtech. "Major OEMs are increasingly looking for suppliers who can deliver integrated solutions on a global scale. Many of our customers will design product in one country and then deploy their systems elsewhere. With Teknor, we are gaining a modern, state-of-the-art ISO-9001 registered manufacturing facility. This complements our European operations and it keeps engineering, manufacturing and technical support close to the customer base."

Teknor adds synergy to Xtech's product lines, sales channels and operations. Teknor's top selling PICMG and CompactPCI single board computers will expand Xtech's product offering which currently includes industrial multimedia and mobile computer boards. In addition, Teknor's single board computers will provide greater depth to Xtech's systems division, Kontron Elektronik (acquired in February, 1999), a leading manufacturer of industrial rackmount chassis, human-machine-interface panels and ruggedized portable computers.