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GE Fanuc Embedded Systems agreed to acquire SBS Technologies on March 20, 2006, for $16.50 in cash per share, with announced total consideration of approximately $215 million net of SBS’s cash and equivalents. The acquisition closed on June 7, 2006. SBS survived the merger as a wholly owned subsidiary of GE Fanuc Embedded Systems.
When was the acquisition announced and completed?
The companies announced a definitive acquisition agreement on March 20, 2006; the merger agreement itself was dated March 19. GE Fanuc announced that the transaction was complete on June 7, 2006. SBS common stock stopped trading after the Nasdaq market close on June 6 and was to be delisted.
Under the merger structure described in the SEC filing, GME, Inc., a wholly owned GE Fanuc subsidiary, merged into SBS. SBS remained the surviving corporation and became a wholly owned subsidiary of GE Fanuc Embedded Systems. The merger agreement records the legal structure; GE Fanuc’s completion announcement gives the closing and trading dates.
How much did GE Fanuc pay?
The announced offer was $16.50 in cash for each SBS share. The companies described the aggregate consideration as approximately $215 million, net of SBS Technologies’ cash and equivalents. That is the transaction value as stated in the March 20, 2006 announcement, not a separately established enterprise-value figure. The announcement contains the stated terms.
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What did SBS Technologies make?
SBS designed and built embedded-computing boards and systems for applications including industrial robots, aircraft, spacecraft, unmanned vehicles, MRI machines, and communications networks. Its offerings ranged from individual modules and boards to integrated systems.
Product categories
- Single-board computers, FPGA boards, I/O modules, and bus adapters
- Communications and networking modules, network switches, blades, and carrier cards
- System enclosures and integrated systems
SBS products used open standards and architectures such as CompactPCI (CPCI), VMEbus (VME), PCI, PCI Express, PMC, PC/104, AdvancedMC, and AdvancedTCA. The acquisition announcement described more than 500 electronic components configurable in thousands of ways. Separately, SBS’s March 2006 quarterly filing said its catalogue listed more than 550 products. These are distinct company-reported descriptions, not a single interchangeable product count. The announcement describes the components and applications; SBS’s Form 10-Q lists catalogue categories.
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Why did GE Fanuc say it wanted SBS?
GE Fanuc presented the deal as a way to broaden its embedded-computing range: from boards in multiple formats and bus architectures to integrated systems designed for different environmental conditions. Its announcement also pointed to SBS’s customers in communications, government and aerospace, medical imaging, industrial automation, and military systems, as well as its established presence in Europe and Asia.
Those points were the buyer’s stated rationale in 2006, not evidence that particular synergies were later realized. At announcement time, GE Fanuc president and CEO Maryrose Sylvester called the combination a “dynamic growth opportunity”; SBS CEO Clarence Peckham said it would benefit both companies’ customers. The companies’ announcement attributes both statements.
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