Radius and SuperMac Announce Agreement to Merge
SAN JOSE, CA (MAY 23) BUSINESS WIRE - May 23, 1994--Radius Inc. (NASDAQ:
RDUS) and SuperMac Technology, Inc. (NASDAQ: SMAC) today announced a
definitive agreement to merge through an exchange of common stock of the
Under the agreement, which has been approved by the board of directors of
each company, Radius will exchange 1.4763 shares of its common stock for
each share of SuperMac common stock. Based on approximately 8.9 million
outstanding SuperMac shares and the current Radius stock price, the
transaction will have a value of approximately $80.5 million.
The merger is intended to qualify as a tax-free reorganization and a
"pooling of interests" for accounting and financial purposes. The merger
will be considered for approval by the shareholders of both companies at
separate meetings anticipated in August 1994 "to achieve substantial cost
savings in the near term and generate the resources needed to develop,
acquire, and market leading edge products in the future."
Current plans call for the new company to continue to market and support
all major products of both companies and continue the sales and marketing
programs aimed at supporting the efforts of their resellers.
Under the terms of the agreement, Berger, 40, will become chairman of the
board and chief executive officer of the combined company. McConnell,
49, will be vice chairman and have responsibility for industry relations
and providing advice on marketing and product strategy. The board of
directors of the combined company will consist of Berger and three other
members of the existing Radius board, and McConnell and Lawrence G.
Finch, currently chairman of the SuperMac board.
On a combined basis, the companies had revenues during the last calendar
year of $340 million. Radius has approximately 14.2 million shares
outstanding and SuperMac has 8.9 million. Each company has extensive
sales and distribution operations throughout North America, Europe, and
the Asia-Pacific region.
Based in San Jose, California, Radius delivers extended computer system
performance, faster graphics, high quality digital video, and enhanced
viewing display products to leading-edge computer users of publishing,
graphics, video and education applications. The company's products are
available through a worldwide network of Radius authorized resellers,
system integrators and distributors and are supported by the Radius
"Worry Free Warranty" program, which features on-site, overnight
replacement of products in North America and the United Kingdom; and by a
lifetime warranty on all add-on or add-in cards.
Based in Sunnyvale, California, SuperMac designs products that accelerate
and enhance the performance of Power Macintosh, Macintosh and
Windows-based computer systems. The company supplies graphics
peripherals for color-publishing, digital video, digital photography, and
business productivity applications. Its products include accelerated
color graphics cards, image-processing accelerators, large-screen
displays, color printers, and digital-video solutions.
CONTACT: Radius Inc.
Robert Saltmarsh, 408/955-1765
SuperMac Technology Inc.
James Heisch, 408/541-5270