HUNTSVILLE, Ala. -- Avocent Corporation (NASDAQ: AVCT) today announced that it has completed the acquisition of Touchpaper Group Limited, a privately held provider of IT business management solutions based in Woking, U.K., for approximately 23 million (approximately $45 million). Avocent also announced that it has signed a definitive agreement to acquire the assets and liabilities of Ergo 2000, Inc., a privately held provider of rack-mounted LCD consoles based in Fullerton, California, for approximately $27.5 million.
Touchpaper had revenues of approximately £17.5 million (approximately $34 million) in 2007, and Ergo 2000 had revenues of approximately $33 million in 2007. Avocent expects that the Ergo 2000 acquisition will close later this quarter and that each will be accretive to operational earnings per share in 2008. These acquisitions are part of an ongoing, larger strategy to invest in and enhance Avocent product offerings in IT Operations Management.
With these acquisitions, Avocent continues to expand the IT Operations Management solutions that reach from the desktop to the data center, said Avocent Interim CEO Edwin L. Harper. The Touchpaper technology has been integrated into the Avocent LANDesk Service Desk product for nearly two years. This acquisition will broaden our desktop management solutions as well as fully integrate with our existing data center solutions, Harper continued.
Both acquisitions deliver on Avocents promise to help IT operations handle and simplify the growing complexity of managing data center and desktop assets in todays organizations, added Harper. Avocent has taken an aggressive position in delivering the framework and toolsets necessary for enterprises to realize a solid ROI on their IT investment, he said.