Merger Creates New Powerful Leader in the Rapidly Growing Mobile and Cellular
Hands-Free Communications Market
NASHUA, N.H. and SAN DIEGO, Calif, May 22 /PRNewswire/ -- GN Netcom signed
an agreement on May 21, 2000 to acquire JABRA Corporation
(http://www.jabra.com), the leading and fastest-growing supplier of advanced
hands-free headset/earset products for mobile and cordless phones in the
United States. GN Netcom, a world leader in hands-free communication
technology, specializes in the design and manufacture of high-quality
telephone headsets and voice input devices for both corded and wireless
applications.
The purchase price for JABRA is $40 million plus earn-out payments
totaling a maximum of $35 million. The purchase is subject to approval by the
US antitrust authorities and is expected to be granted this July.
The purchase of JABRA is a substantial step on the way to realizing GN
Netcom's goal of becoming the world's leading supplier of solutions for hands-
free communications. Together the companies will be able to offer the broadest
array of products to their customers, including future Bluetooth-enabled
wireless devices.
Following the merger, JABRA will continue to operate as a strategic
business unit within the GN Netcom Group under the leadership of its present
management team. Its operations will continue to be headquartered in San
Diego, California, a hot bed for wireless technology development. The company
will continue to offer its current as well as new products under the JABRA
brand.
JABRA's revenues have grown more than ten times over the last 3 years,
from less than $4 million in 1998 to more than $40 million projected in 2000.
GN Netcom will play a pivotal role in the continued growth of JABRA by
providing working capital, critical technology (including Bluetooth) through a
technology sharing program with its technology centers in the US and Denmark.
GN Netcom also brings strong distribution channels in Europe and Asia and
combined operations expertise on a global basis. The acquisition of JABRA
will expand GN Netcom's leadership in the mobile/cordless market and will open
important additional sales channels for GN products, especially in the United
States.
JABRA's President and CEO, Vicki L. Marion joins the management team for
GN Netcom, reporting to P. Michael Fairweather, President & CEO of GN Netcom,
Inc. and Executive Vice President of the GN Netcom Group
The Strategic Rationale Behind the Merger
"The mobile telecom market will continue to be the fastest growing segment
of the hands-free business in the foreseeable future. With its acquisition of
JABRA, GN Netcom secures a substantially broader product platform with unique,
leading-edge mobile telephone products, along with access to new and important
sales channels in North America," stated P. Michael Fairweather, President and
CEO for GN Netcom, Inc. and Executive Vice President of the GN Netcom Group.
"JABRA also has great potential outside North America, which GN Netcom will be
able to realize through its worldwide distribution network."
"GN Netcom enjoyed a very strong first quarter in 2000, with about 35% in
organic growth and earnings substantially above projections. The company's
success has been noticeable in all markets," Fairweather stated.
"We are very excited about our new partnership with GN Netcom," stated
Vicki Marion, President and CEO of JABRA Corporation. "It will enable JABRA
to bring more new and innovative products to our channel partners quickly.
The technology sharing with GN Netcom's vast R&D centers will allow us to move
ahead of our competition, especially in the wireless hands-free arena." "It is
our goal to use our technology and brand positioning to become the premier
development and marketing partner for any device maker seeking to enable their
products for hands-free voice and data communication." Our partnership with
GN Netcom will make the already popular JABRA brand a household name on a
global basis."
About JABRA Corporation
Headquartered in San Diego, California, JABRA provides innovative hands-
free communications products for telecommunications, interactive computing and
computer telephony applications. JABRA is best known for its groundbreaking
JABRA EarSet?, a headset-like device that combines a microphone and speaker in
a single unit that fits comfortably in the outer ear. The unique, patented
EarSet line includes products suited for use with mobile telephones, cordless
telephones and computers. This EarSet has made JABRA a premier provider of
hands-free communications products for mobile telephony in the US and the
best-known brand in hands-free devices for mobile and cordless telephones.
JABRA also markets hands-free products for use with cordless telephones and
computers.
JABRA has grown rapidly since 1998 and forecasts approximately $40 million
in revenues during 2000. It is expected to maintain a very strong growth
trend throughout the foreseeable future. Most of JABRA's sales are in the
United States. Its products are marketed through cellular/PCS mobile
carriers, distributors, dealers, OEM customers and major retail and Internet
partners. Key strategic customers include major consumer electronic retailers
Radio Shack and Circuit City and cellular carrier, VoiceStream Wireless.
For more information about JABRA Corporation and its products, please call
1-800 EAR-2233 (1 858 622 9955 outside North America) or visit
http://www.jabra.com.
About GN Netcom
GN Netcom is a world leader in hands-free communication technology.
Specializing in the design and manufacture of high-quality telephone
headsets, voice input devices, remote voice pickup and related products, GN
Netcom offers a product line that defines the state-of-the-art for both
traditional corded and wireless solutions. By working in close partnership
with customers to understand the needs of end users, the company has
successfully responded to the needs of the call center, professional, SOHO,
CTI, speech recognition and mobile communications markets. GN Netcom products
are sold through specialty distributors, supply houses and dealers, under the
brand names GN Netcom, UNEX and ACS, as well as through a variety of OEMs.
GN Netcom headquarters are in Copenhagen, Denmark. The company operates
from three principal regions including North America, Europe and Asia. GN
Netcom Inc. a wholly owned subsidiary of GN Netcom AS, is headquartered
Nashua, N.H., with offices in Scotts Valley, Calif., Mississauga, Ontario, and
locations throughout the United States.
GN Netcom, based in Copenhagen, Denmark, is a member of the Danish-based
GN Great Nordic Group. GN Great Nordic Group is traded on the Copenhagen Stock
Market (GNTC).
For more information about any of GN Netcom's high-quality, innovative
hands-free products, contact GN Netcom, Inc., 1-800-826-4656, or visit
http://www.gnnetcom.com.
SOURCE GN Netcom
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Related links:
http://www.gnnetcom.com
CONTACT:
Michelle Boockoff-Bajdek GN Netcom, Inc.,
800-826-4656 ext. 525, mboockoff-bajdek@gnnetcom.com; Sean Dolan
of Earle Palmer Brown, 203-705- 9235, sdolan@epb.com, for GN
Netcom, Inc.; or Thomas Hanson of JABRA Corp., 858-622-9877,
thanson@jabra.com
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