SBE, Inc. (Nasdaq:SBEI), a leading provider of high-performance IP storage solutions serving remote back-up and disaster recovery applications, announced it has signed a definitive asset purchase agreement to sell its embedded hardware business to One Stop Systems, Inc. for approximately $2.2 million in cash. In addition, under the terms of the agreement, One Stop Systems will assume the lease liabilities associated with SBE’s corporate headquarters and equipment related to the embedded hardware business.
“We are pleased with the terms of the asset sale transaction. The infusion of $2.2 million in cash, coupled with the reduction in our long-term liabilities, expands the options available to SBE as we explore all strategic alternatives that may enhance shareholder value,” said Greg Yamamoto, President and Chief Executive Officer of SBE.
“The acquisition of SBE’s embedded hardware business further accelerates One Stop Systems’ growth in the embedded computer marketplace. We look forward to serving the expanded customer base we now have as a result of this acquisition. We believe the synergies from the combined product lines will better serve our current customers as well as SBE’s existing, embedded hardware clients,” said Steve Cooper, President and Chief Executive Officer of One Stop Systems.
SBE expects to complete the transaction in its second fiscal quarter, subject to satisfaction of closing conditions set forth in the asset purchase agreement. In addition to customary closing conditions, the transaction is subject to the approval of SBE’s shareholders.
SBE designs and provides IP-based storage networking solutions for an extensive range of business critical applications, including back-up and disaster recovery. SBE delivers a portfolio of scalable, standards-based hardware and software products designed to enable optimal performance and rapid deployment across a wide range of next-generation storage systems. Based in San Ramon, California, SBE is a publicly traded company (NASDAQ:SBEI) with products sold worldwide through direct sales, OEMs and system integration partners.
About One Stop Systems
One Stop Systems, Inc., a global provider in industrial-grade computing systems and components, manufactures standard, custom and semi-custom designs for converged communications, industrial control and military applications. These include CompactPCIe, PCIe, PCI/ISA and VME-based architectures. One Stop Systems offers responsive service, the highest quality design and manufacturing and on-time delivery. One Stop Systems is based in Escondido, California.
SBE and the SBE logo are registered trademarks of SBE, Inc.