It was difficult to find financial statements for the companies that would help address the time lines and stipulations as required by the assignment. However, the researched firms somewhat mirror the situation the Lester and the others are facing. All are tech component firms forced to acquire or sell out due to some type of financial situation. Discussion will revolve around the circumstances leading up to the mergers/deals and outcomes if any.
Innovative Synthesis Technologies IST is a French component company struggling to penetrate the US market. With the realization that the company fate relied on a technical superpower like the US, extensive resources were exhausted trying to establish a well-defined customer base their. As result, the company has had a difficult time maintaining their office in the US (Engineering p. 1). The major problem was that the company was too small and lacked the international influence needed to establish global partnerships.
Moreover, company never fully recovered from an abrupt departure of industry veteran Bruce Bourbon as its CEO. His absence was blamed for the loss of some expected ventures (Engineering p. 1).
IST's financial situation was seen as a purchasing opportunity by Minc Inc. As major a provider of PLD filters and design tools, Minc offered to purchase IST to in hopes of expanding its technology production and flexibility. The terms of the deal were kept confidential. However, it is known that there was little cash involved. The acquisition will increase Minc's repertoire and it will also add to the firm extensive OEM (Original Equipment Manufacturer) partnership list, which includes Cadence, Mentor Graphics, Data I/O, MicroSim and Viewlogic (Engineering p. 1). Unlike IST, Minc is diversely supported to compete internationally. It stipulated that Minc may also consider selling the French company's technology if things do not...