Celetron Acquires Specialty Power Supply Designer EOS

Business Wire, Oct 8, 2001

Business Editors/High-Tech Writers

SIMI VALLEY, Calif.--(BUSINESS WIRE)--Oct. 8, 2001

Electronics manufacturer Celetron International announced on Monday that it has agreed to acquire EOS Corporation, the leading designer of ultra-miniature, high-efficiency power supplies. The acquisition gives Celetron the unique capability to design and manufacture the most technologically advanced AC/DC power supplies available on the market in the most cost-effective manner.

EOS has experienced record growth during the fiscal year through rapid market acceptance of its low to medium watt open-frame AC/DC power conversion devices in the medical, industrial, consumer and communications industries. The small size, high current density and extremely high efficiency of EOS' power supplies have created a staggering pent up demand for the products by electronic equipment manufacturers. EOS power supplies are one-half the size, four times the current density and 25 percent more efficient in converting AC wall power to DC power than comparable competing products. Current customers of EOS' products include blue-chip names in the Network Infrastructure, Computing and Medical Devices markets.

Jay Tandon, President of Celetron, states: "This combination will allow EOS' leading-edge products to be produced cost-effectively in Celetron's world-class facility. In addition, it will allow us to truly support EOS' customers, who are now our customers, on a worldwide basis." Added Michael Archer, founder of EOS and newly appointed CTO to Celetron: "Full control of the design, manufacturing and marketing processes will not only enable us to better manage fluctuations in demand but will also enhance our responsiveness to our customers."

Prescott Ashe, a Managing Director at Golden Gate Capital, who also advised Celetron on the transaction, comments: "We are extremely excited about the EOS acquisition. EOS' excellent product line will give Celetron an entree into the highly attractive sub-300 watt AC/DC segment of the power supply market, currently estimated at over $6 billion. In addition, we expect the acquisition will uniquely position Celetron to be a low cost provider of power supplies to other large contract manufacturers, who spend billions of dollars annually purchasing third-party power supplies."

About Celetron: Celetron is India's largest exporter of electronics, with over 20 years of experience in delivering complete end-to-end solutions for electronic OEMs. As a technology leader, the Company focuses on providing world-class engineering solutions in a cost-effective manner. Celetron's services include: precision electro-mechanical assembly (including optical components); PCB and memory-module test and assembly; the manufacture of power conversion equipment and RFID products; box-build and systems integration; and the supply of design, engineering, and other prototype services. Its manufacturing operations (with fulfilment facilities in Asia, the United States, and Europe) are ISO 9002 certified and are principally located in India and Sri Lanka, consisting of approximately 500,000 square feet of assembly capacity, including 300,000 square feet of Class-100 clean-rooms. Celetron employs over 5,000 employees, including approximately 500 engineers, giving it one of the lowest-cost and industry-leading engineering capabilities in the EMS and OMS markets.

In May 2001, Celetron raised $48 million in growth capital from a group of blue-chip investors that includes New Enterprise Associates, Golden Gate Capital, Baring Asia Private Equity Fund II, Alta Partners and a strategic corporate investor.

About the investor group: New Enterprise Associates is a leading venture capital firm with $4.8 billion in capital, specializing in information technology and life sciences. Golden Gate Capital is a San Francisco-based private equity firm with approximately $700 million of capital under management. Baring Asia Private Equity Fund II is a leading Asian private equity fund with approximately $600 million of capital under management with offices throughout Asia and Silicon Valley. Alta Partners is a San Francisco-based venture capital firm with approximately $1 billion under management.