LOS ANGELES (July 9, 2019) – Platinum Equity announced today the sale of the Embedded Computing business of portfolio company Artesyn Embedded Technologies, Inc. (“Artesyn”), to SMART Global Holdings, Inc. (“SMART”) (NASDAQ: SGH). The transaction is valued at approximately $80 million in cash at close, plus approximately $10 million of performance-based consideration that will be paid if certain agreed-upon targets are achieved over the second half of calendar year 2019.
Artesyn has been a portfolio company of Platinum Equity since 2013.
Artesyn’s Embedded Computing business is a leading global supplier and manufacturer of embedded computing systems for original equipment manufacturers and systems integrators serving the telecommunications, defense, aerospace, medical and industrial automation end markets.
“The Embedded Computing business is an industry leader that continues to develop innovative technology solutions in partnership with its customers around the world,” said Platinum Equity Partner Jacob Kotzubei.
SMART is a global leader in specialty memory, storage and hybrid solutions serving the electronics industry.
“The Embedded Computing business is an industry leader that continues to develop innovative technology solutions in partnership with its customers around the world,” said Platinum Equity Partner Jacob Kotzubei. “Through investments in R&D and new product development, the business has made great strides diversifying its customer base and is poised to take the next step as part of the SMART portfolio.”
The transaction announced today only involves Artesyn’s Embedded Computing business. In May, a definitive agreement was signed to sell Artesyn’s Embedded Power business to Advanced Energy. Artesyn’s Consumer products business is not part of either sale and will remain part of Platinum Equity’s portfolio.
Mr. Kotzubei said separating the three businesses makes the most long-term sense.
“Artesyn serves three very different markets, each with its own customer base and unique dynamics,” explained Mr. Kotzubei. “Separating them into standalone operations opens up more opportunities with greater potential.”
JP Morgan is serving as primary financial advisor to Artesyn on the sale of the Embedded Computing business. Morgan, Lewis & Bockius LLP and Baker & McKenzie LLP are serving as Artesyn’s legal counsel on the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores
, Platinum Equity
is a global investment firm with approximately $13 billion of assets under management and a portfolio
of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV
, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund
, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 24 years Platinum Equity has completed more than 250 acquisitions