Zoom Telephonics Acquires Hayes Modem Assets
Boston, MA, April 7, 1999 -- Zoom Telephonics, Inc.
(NASDAQ: ZOOM)
announced today that it has acquired most of the modem assets
of Hayes Corporation, including the Hayes, Practical Peripherals,
Accura, Optima, Century 2, and Cardinal brands and product
rights for the USA, Canada, South & Central America, Europe,
and the Middle East. In addition, Zoom has acquired all the
assets of Hayes Europe, including a significant ongoing operation
headquartered in the UK. The Hayes brands and product
rights purchased by Zoom accounted for approximately $80 million
in Hayes sales in 1998. Zoom has also acquired Hayes'
Cable Modem and DSL Lab equipment to support Zoom's ongoing
programs in these fast-growing wide area network communications
areas. Zoom's purchases of Hayes assets cost a total
of $5.3 million, paid entirely in cash. In addition to the
product rights, Zoom received more than $4 million of hard
net assets including cash, receivables, inventory, and equipment.
Zoom is in discussions regarding the purchase of some of the
remaining Hayes assets. Founded in 1977, Zoom Telephonics
is a leading manufacturer of modems and other data communications
products. Also founded in 1977, Hayes was the pioneer in modems
for personal computers, and is well known for inventing the
modem command set that made "Hayes compatibility"
the de facto standard of the modem industry. The Hayes
name is highly respected worldwide, and Zoom plans to actively
market a broad line of Hayes products. Zoom will continue
to manufacture Hayes products utilizing Hayes designs, and
plans to add new products to the Hayes product line in the
future. Of course, Zoom Telephonics will also continue to
design, produce, and market Zoom brand products. The
combination of Zoom and Hayes consolidates two of the most
important personal computer data communications brands in
the world under Zoom's control. "Zoom is very
excited about the synergistic potential of this acquisition,"
said Frank Manning, Zoom's President and CEO. "Hayes'
products and brand name are well-known and respected worldwide.
We are particularly enthusiastic about the acquisition of
Hayes' valuable European operation, including a knowledgeable
and enthusiastic staff at the Hayes' European office close
to London. In addition, we are fortunate to have hired several
senior members of the engineering, sales, and marketing teams
from the Hayes corporate headquarters in Atlanta to provide
product and market continuity for the Hayes product lines.
In the USA our primary channel for Hayes products will be
existing Hayes distributors and value-added resellers selling
to corporations and government agencies. In the UK we will
continue to sell Hayes through its powerful retail channel,
as well as through its distributors and VARs. Outside the
USA and the UK, we will carefully coordinate Zoom and Hayes
distributors, allowing some of the best distributors to carry
both brands." "We believe that this acquisition
will give us the opportunity to grow our modem sales and market
share in a market experiencing revenue declines. The acquisition
also expands our channels and branding flexibility for wireless
data products, cable modems, and DSL products, which will
play a major role in the future of client-side data communications."
"All acquisitions require focus and a significant investment
of time, and this one is no exception. However, the integration
of our Hayes division is proceeding with remarkably little
disruption to ongoing operations and little effect on our
balance sheet. We see minimal downside with this investment
and considerable upside, particularly in the second half of
1999 and beyond." For additional information please
contact Investor Relations, Zoom Telephonics, 207 South Street,
Boston, MA 02111, telephone (617)423-1072, fax (617)338-5015,
e-mail address investor@zoom.com. Zoom's World Wide Web site
is www.zoomtel.com. |
