The transaction is expected to close in the next month.
Southland, which is headquartered in Irvine, California, has been manufacturing computer memory technologies, around which it wraps services, since 1987. The company employs roughly 80 people.
Austin, Texas-based Staktek said the acquisition will create more opportunities for the company to sell its technology to server OEMs and data center customers.
Southland’s key OEM relationships will support our vision to become a leading supplier of IP solutions for high-performance and power-efficient servers and data centers, said Staktek CEO Wayne Lieberman.
Staktek’s memory staking technology increased the performance of computers systems by doubling, tripling or quadrupling the amount of memory in the same physical footprint required by standard packaging technologies. Its ArctiCore technology using a double-sided, multi-layer flexible circuit folded around an aluminum core.
Staktek holds over 200 patents or its technology.
Staktek certainly needs to do something to bump up its sales. Earlier this month the company reported a second-quarter slump in revenue to $8.2m, compared to $14.4m in the same quarter a year ago. The company’s net loss also widened to $4.1m in the quarter, from a net loss of $592,000 a year ago.
