ELSA Terminates the Announced Hercules Acquisition
Shareholder interest protected
ELSA AG, Aachen, a leading supplier of PC peripheral products for computer graphics and data communications, had announced its plans to acquire Hercules Computer Technology, Inc. on August, 21st, 1998. Today ELSA announced that the negotiations have been terminated.
Theo Beisch, President and CEO of ELSA AG, commented: "The results of ELSA's own due diligence as well as the examination of our outside auditor, Arthur Andersen, did not confirm the company's expectations so that finally within the given timeframe the parties were unable to reach agreement. Despite still being convinced of the Hercules brand, the final conclusion was that it was in the best interest of ELSA and our shareholders, not to proceed with the acquisition. Accordingly, ELSA exercised its right to terminate the transaction."
Beisch further added that ELSA will continue to focus on the PC and data communications markets. Also the international expansion strategy, including the search for attractive investment opportunities in Europe, the US and in Asia, as well as the further expansion of ELSAs international sales channels will be continued.
ELSA AG, based in Aachen, is traded publicly on the "Neuer Markt" stock exchange in Frankfurt. ELSA AG is internationally represented by its subsidiaries in Santa Clara (California, USA), Taipei (Taiwan), and Tokyo (Japan). Founded in 1980, ELSA has built up a world-class reputation for applying advanced engineering expertise to computer graphics and data communications products. Technological competence, German standards of quality, leading-edge products and services backed up by excellent support: These are factors that firmly place ELSA at the forefront of the market today.
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