LSI Industries Inc. Announces Acquisition of Virticus Corporation
CINCINNATI, March 19, 2012 (GLOBE NEWSWIRE) -- LSI Industries Inc. (LYTS) today announced that it has entered into a definitive agreement to acquire Virticus Corporation, located in Beaverton, Oregon. Consideration for the purchase of all of the issued and outstanding capital stock of Virticus consisted of $3.15 million in cash and a contingent payment opportunity (earn-out) of $5.0 million. The balance sheet of Virticus was debt free. The management of Virticus has entered into long-term employment agreements and will continue to manage the business of Virticus which will remain headquartered in Beaverton, Oregon. The transaction is expected to close this week.
Virticus, a start-up company with sales beginning in 2010, is in the business of developing, designing, manufacturing, selling and servicing automated network control systems and software for the management of indoor and outdoor lighting and lighting systems.
Robert J. Ready, Chief Executive Officer, LSI Industries, commented, "LSI is committed to leadership in the solid-state LED lighting market. Our 2006 acquisition of SACO Technologies Inc. provided the LED platform. Then, our 2009 acquisition of AdL Technology provided vertical integration in connection with designing, engineering and producing the solid-state electronics that control and drive LEDs. Now, the acquisition of Virticus will complement and further expand LSI's capabilities in providing our customers with sophisticated lighting and energy management control solutions. Coupled with our industry-leading LED lighting products, our customers will have complete solid-state solutions to their lighting needs. Both energy savings and improved lighting quality are among the many benefits that can be achieved through the integrated LSI solid-state solution. We welcome the Virticus team to the LSI family, and we look forward to the contributions from this talented group of experienced individuals."
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This document contains certain forward-looking statements that are subject to numerous assumptions, risks or uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "expects," "intends," "believes," "seeks," "may," "will," "should" or the negative versions of those words and similar expressions, and by the context in which they are used. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. Actual results could differ materially from those contained in or implied by such forward-looking statements as a result of a variety of risks and uncertainties over which the Company may have no control. These risks and uncertainties include, but are not limited to, the impact of competitive products and services, product demand and market acceptance risks, potential costs associated with litigation and regulatory compliance, reliance on key customers, financial difficulties experienced by customers, the cyclical and seasonal nature of our business, the adequacy of reserves and allowances for doubtful accounts, fluctuations in operating results or costs whether as a result of uncertainties inherent in tax and accounting matters or otherwise, unexpected difficulties in integrating acquired businesses, the ability to retain key employees of acquired businesses, unfavorable economic and market conditions, and the results of asset impairment assessments. You are cautioned to not place undue reliance on these forward-looking statements. In addition to the factors described in this paragraph, the risk factors identified in our Form 10-K and other filings the Company may make with the SEC constitute risks and uncertainties that may affect the financial performance of the Company and are incorporated herein by reference. The Company does not undertake and hereby disclaims any duty to update any forward-looking statements to reflect subsequent events or circumstances.
About the Company
Leadership. Strength. Innovation. Those are the key values behind the smart vision upon which LSI Industries Inc. was founded when established in 1976. Today LSI demonstrates this in our dedication to advancing technology throughout all aspects of our business. We are a vertically integrated manufacturer who combines integrated technology, design and manufacturing to produce the most efficient, high quality products possible. Everything we build is done right here in one of our US plants.
We are committed to advancing solid-state technology to make affordable, high performance, energy efficient lighting and custom graphic products that bring value to our customers. We have a vast offering of innovative solutions for virtually any lighting or graphics application. Further, we can provide design support, engineering, installation and project management for custom graphics rollout programs for today's retail environment.
LSI is a U.S. manufacturer with marketing / sales efforts throughout the world with concentration currently on North America, Latin America, Australia, New Zealand, Asia, Europe and the Middle East. Our major markets include the commercial / industrial lighting, petroleum / convenience store, multi-site retail (including automobile dealerships, restaurants and national retail accounts), sports and entertainment markets. Headquartered in Cincinnati, Ohio, LSI has facilities in Ohio, New York, North Carolina, Kansas, Kentucky, Rhode Island, Texas and Montreal, Canada. The Company's common shares are traded on the NASDAQ Global Select Market under the symbol LYTS.
The LSI Industries Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3646
For further information, contact either Bob Ready, Chief Executive Officer, or Ron Stowell, Vice President, Chief Financial Officer, and Treasurer at (513) 793-3200.
Additional note: Today's news release, along with past releases from LSI Industries, is available on the Company's internet site at www.lsi-industries.com or by email or fax, by calling the Investor Relations Department at (513) 793-3200.
CONTACT: BOB READY OR RON STOWELL (513) 793-3200
Source: LSI Industries Inc. 2012 GlobeNewswire, Inc.