Embedded imaging software house Peerless Systems Corp said Tuesday that it will acquire Auco Inc, a privately-held developer of embedded networking technology for about $21m in stock, based on Monday’s closing price. The deal calls for Peerless to issue 2.5 million shares for all outstanding shares of Auco. The transaction will be accounted for as a pooling of interests and is expected to be completed during Peerless’ second or third fiscal quarter. The company expects to record a one-time charge of about $2.3m for acquisition-related costs in the July quarter. Adam Au, Chief executive of Auco, will become a VP at Peerless and general manager of the Peerless networking division based in Redwood City, California.
Peerless provides software-based embedded imaging systems to original equipment manufacturers of digital document products, such as copying machines, printers and scanners. It says the acquisition will allow it to offer OEMs a one-stop shop for technology that will be far more cost-effective than the separate imaging and networking solutions that are typically used today. Another plus in the deal, Peerless says, is that Auco’s expertise in internet printing will allow Peerless-enabled printers and multifunction products to become more widely accessible. Auco claims expertise across an array of networking technologies, including NetWare, Windows NT, Unix, and Appletalk.
