Three-Five Systems, Inc., a Tempe Ariz. manufacturer of display products and systems, announced that today it completed the acquisition of ETMA, a privately-held company, for $38 million in cash.
ETMA is a Redmond, Washington based electronics
manufacturer for OEM customers in the computer/server, medical monitoring and Internet security industries.
"Three-Five's customers, including top-tier contract manufacturing
companies, are increasingly demanding both design and manufacturing expertise
for display-centric devices at the subsystems level," the company said. "With the acquisition of
ETMA, Three-Five is now a complete design and manufacturing center that can
better service the requirements of both existing and new customers.
ETMA has six surface mount
manufacturing lines, including one dedicated to new product introduction and
prototyping activity. The company provides engineering support, automated
printed circuit board assembly, in-circuit and functional testing, systems
integration and box build, supply chain management and turnkey packaging and
Key ETMA customers include Avocent, a leading producer of
keyboard, video, mouse (KVM) switches, Medtronic Physio-Control, a division of
Medtronic Inc., makers of defibrillators and monitors, WatchGuard
Technologies, developers of authentication and data encryption software and
firewall hardware for virtual private networks, and Spacelabs Medical, makers
of integrated healthcare systems and medical devices.
In 2003, ETMA is expected to generate approximately $65 million in revenue
with an EBITDA of approximately 10%.
Three-Five Systems will maintain the leased facilities established by ETMA
in Redmond. The unit will report to Carl Derrington, Three-Five's chief