Gores to Acquire Encore’s Real-Time Business
March 9, 1998
LOS ANGELES - The Gores Technology Group has signed a letter of intent with Encore Computer Corporation of Ft. Lauderdale, FL to acquire the assets of Encore's Real-Time business.
Encore is the world's leading innovator in scalable real-time data systems. "We believe that this is a very valuable business," said Gores Technology Group's founder and chairman Alec Gores. "We intend to capitalize on those assets to build a profitable, growing company in much the same way we have for the other computer-related companies we have acquired over the past five years." Headquartered in Los Angeles, the Gores Technology Group consists of ten interrelated but autonomous computer-related companies focused on hardware and or software development, distribution, and support services. Much of the company's rapid growth in the 1990s to its current $200 million size has been the result of acquiring and then expanding companies and technologies. Encore develops and markets real-time data systems both in the U.S. and overseas for such diverse applications as military aircraft simulators, utility power stations, and rapid transit systems. Among its customers are most major airlines, Boeing, Lockheed/Martin, Grumman, Sandia, Electrabell, Duke Power, and Consolidated Edison. "We intend to re-focus Encore on its Real-Time system offerings to its impressive customer set," Gores said. "The Gores business approach is to first determine the needs of a newly acquired company's key customers and formulate a strategy to be responsive to those needs. Then, we plan and budget our activities and our R&D to support that strategy. Our R&D investment in newly acquired companies averages 20% of revenues. "Hence, we fully intend not only to meet all the contractual obligations to Encore's current Real-Time systems customers, but to greatly expand our relationships with these customers as well. We will also aggressively pursue new business relationships in the real-time systems marketplace." Gores companies are entrepreneurial in nature, and the company says that Encore will be no exception. "Our goal is to empower and challenge our talented new employees and thereby grow the company into an undisputed industry leader," Gores said. The Gores Technology Group's financial muscle has enabled it to supply the working capital needed to build the future of companies it acquires. In addition, it offers extensive marketing and distribution resources in the U.S., Europe, Asia, and Latin America.