Zoom Acquires Boca's Global Village and Analog Modem Business Assets

Strategic Insights -

Zoom Telephonics, a communications leader, has acquired certain assets of Boca Research's Boca Global subsidiary relating to the Company's analog modem business. Under the terms of the agreement, Zoom has acquired selected trademarks, including Global Village, rights to all Global Village and Boca Research branded products, and certain Web domain names. Boca Research will continue to support all the products it has already shipped and will remain responsible for warranty, returns, and technical support for these products.

Key Takeaways:

  • Zoom has acquired Boca Research's analog modem business assets, including trademarks, products, and Web domain names.
  • The agreement provides Boca Research with a smooth and customer-oriented transition out of the analog modem business and into the software and engineering design services business.
  • Boca Research will continue to support all products it has already shipped and will be responsible for warranty, returns, and technical support for these products.
  • Zoom will lease Boca's Florida-based technical support facility.
  • The purchase price is subject to increase based on sales performance, with a minimum payment of $500,000 if sales exceed $12 million in the following 12 months.
  • Sales by Boca of its analog modem products for the quarters ended March 31, 2000 and June 30, 2000 were $4.3 million and $2.7 million, respectively.
  • Zoom intends to introduce new products for the Macintosh, such as ADSL modems and cable modems, under the Global Village name.
  • Boca Research's transition to a software and engineering design services company is a major milestone towards realizing its stated strategy.

Statistics:

  • Sales by Boca of its analog modem products for the quarters ended March 31, 2000 and June 30, 2000 were $4.3 million and $2.7 million, respectively.
  • The minimum purchase price of $500,000 is subject to increase based on sales performance.

Sources:

  • Boca Research Inc. (Nasdaq: BOCI)
  • Zoom Telephonics Inc. (Nasdaq: ZOOM)
  • Boca Research's annual report on Form 10-K for the year ended December 31, 1999
  • Zoom's filings with the Securities and Exchange Commission (SEC)