Oak has used Accel’s design services since Accel was founded in 1995. The acquisition expands Oak’s global design capabilities for optical storage and allows Oak to more quickly introduce turnkey products to the PC and consumer markets.

Under the terms of the acquisition, Oak will purchase all outstanding shares of Accel Technology Co. Ltd. Accel will become a wholly owned subsidiary of Oak technology and will be integrated into Oak’s Optical Storage Group (OSG). Accel will continue to operate under the Accel Technology name, retain its existing customers, and be guided by Accel president Masaharu Morishima, who will become vice president of the Accel Technology Division within OSG. Mr. Morishima will report to Shlomo Waser, senior vice president and general manager, OSG.

Representative designs completed by Accel include CD-ROM drives for a major manufacturer’s game consoles, half-height and slim combo (CD-RW/DVD) and CD-RW drives, and DVD recordable appliances for a number of brand name CE manufacturers including Ricoh, Sega and Tottori Sanyo, and other unannounced leading optical drive manufacturers.

This acquisition is part of our ongoing initiative to maintain our leadership position in the CD-RW drive controller market, as we expand into other optical storage markets, including DVD recordable solutions, said Young Sohn, president and CEO of Oak Technology. The acquisition allows us to compete more effectively in turnkey market segments and to better service our current and future customer base by building a global network of design centers.

Accel’s turnkey designs will enable us to ramp more quickly in the DVD recordable segment and participate in the important Japanese DVD player market through Accel’s established customer base. The addition of Accel’s experienced optical storage design team to our Optical Storage Group will also be a strategic advantage as we continue to develop new CD-RW and DVD recordable solutions for the PC and consumer markets.

We have had a successful long-term working relationship with Oak, and are delighted to become part of Oak’s Optical Storage Group, said Morishima. Our experience in CD-RW, CD-ROM and DVD drives for the consumer and PC markets complements Oak’s strengths in leading edge optical storage controller design.

SOURCE: COMPANY PRESS RELEASE