markw@celerity.UUCP (Mark Whiteside) (04/15/88)
For Immediate Release
Contact:Stephen C. Vallender
Celerity Computing
9692 Via Excelencia
San Diego, CA 92126
(619) 271-9940
Celerity to be Acquired by Floating Point
SAN DIEGO, CA (April 14, 1988) -- Celerity Computing
announced today that it and Floating Point Systems, Inc. of
Beaverton, Oregon have signed an agreement in principle
under which Floating Point will acquire substantially all
assets and technology of Celerity and assume related liabil-
ities.
Floating Point Systems will make the purchase by issuing
common stock having a value of $1.25 million along with cer-
tain cash payments. An additional contingent stock payment
of up to another $1.25 million is due upon achievement of
certain results. In addition, Floating Point will provide
certain cash payments, prior to completion of the final
agreement, to fund Celerity's operations.
The agreement is subject to the negotiation of a defini-
tive agreement expected to be signed in the next several
weeks, according to Stephen C. Vallender, president and
chief executive officer of Celerity. In addition both com-
panies boards must approve the action, Celerity's investment
banker must complete a fairness opinion and Celerity's
shareholders must approve the sale.
"We believe Floating Point Systems is an excellent company
with the distribution needed to bring Celerity's innovative
technology to market," said Vallender.
Howard A. Thrailkill, Floating Point's president and chief
executive officer, said "Celerity has developed some excel-
lent technology that will integrate well into our future
product offerings. Celerity's technology complements ours
and will add to the breadth and depth of solutions we offer
our customers. The company has some excellent people and we
look forward to having them on our team."
"We will service and support Celerity's installed base of
about 100 customers," added Thrailkill.
Floating Point Systems and Celerity both design, manufac-
ture and market high-performance computer systems for use in
computationally intensive technical applications. Celerity
was founded in August of 1983, and shipped its first product
in 1984. Floating Point Systems (NYSE symbol FLP) was
founded in 1970 and has the world's largest installed base
of array processors and minisupercomputers.
Floating Point Systems develops, produces and markets
integrated compute servers designed to perform mathematical
calculations at very high speeds. These computers are used
in technical applications, principally by engineers and
scientists, to improve the quality and speed of their
designs through the use of mathematical modeling.
-30-