AST Research Sells PenRight! Software Business to Telxon
IRVINE, Calif. — January 27, 1994 — AST Research Inc. announced it has signed a definitive agreement to sell its Fremont, Calif.-based PenRight! and FieldNet software assets to a subsidiary of Akron, Ohio-based Telxon Corp., one of the world's leading developers of wireless portable tele-transaction systems.
The sale includes intellectual property rights, inventory and contracts for AST's PenRight! pen software development tools and FieldNet wireless communications software. The purchase price was not disclosed.
Telxon's plans are that current PenRight! customers will see no interruption in service or development efforts related to the PenRight! development tools and FieldNet wireless communications software. Telxon has retained the current PenRight! and FieldNet marketing, support and engineering staffs, who will operate from a newly established Telxon subsidiary office in Fremont.
"We continually reassess our business to determine the most effective methods to deliver the best solutions to our customers," stated Howard Elias, AST vice president of worldwide marketing. "Selling the PenRight! software business to Telxon allows us to concentrate on our core hardware systems business, while retaining the rights to provide PenRight! on our pen systems, which we continue to manufacture and market."
Under the terms of the sale, AST retains the right to sell PenRight!, the leading pen development environment that has captured 80 percent of the vertical pen-based market according to industry analysts. AST will sell PenRight! with its pen-centric computers, which include the GRIDPAD 2390 personal digital assistant, GRiD Convertible, PalmPAD and PalmPADSL, continuing to give customers access to a wide range of vertical business applications developed in the PenRight! operating environment.
As part of the sale, Telxon assumes and will be supporting contracts with more than 750 independent software developers, writing vertical business applications in the PenRight! operating environment, as well as OEM supplier agreements with leading hardware manufacturers around the world.
"Telxon is pleased to purchase the PenRight! and FieldNet products and software groups," commented Roger Murphy, Telxon's vice president of corporate development. "Telxon has created a new independent subsidiary, PenRight! Corp., with headquarters in Fremont, to continue the excellent work done by the current marketing and engineering groups within the organization." Corporate Background
AST Research Inc., the world's fifth largest personal computer company, develops PC products ranging from handheld portable systems to superservers under the Advantage!, Bravo, Premmia, Manhattan SMP, PowerExec GRiD and Victor brand names. Revenues for the first six months of fiscal year 1994 totaled more than $1.191 billion, an 88% increase over the prior year period. Ranked number 367 on the Fortune 500 list of America's largest industrial companies, AST is represented in 100 countries and operates 43 subsidiaries and sales offices worldwide. Corporate headquarters is located at 16215 Alton Parkway, P.O. Box 57005, Irvine, Calif., 92619-7005. Telephone: 714/727-4141 or 800/876-4278. FAX: 714/727-9355.
Telxon Corp., serving more than 7,000 customers in 47 countries aroun the world, is one of the leading manufacturers of portable and wireless tele-transaction systems. The company integrates advanced Portable Tele-Transaction Computers (PTCs) with wireless and network communication technology, a wide array of peripherals and application-specific software to a diverse group of vertical markets. Telxon's executive and engineering offices are headquartered in Akron Ohio; its manufacturing facility is in Houston, Texas.
CONTACT:
AST Research Inc.
Donna Kather, 714/727-7943
or
Telxon Corp.
Roger Murphy, 216/867-3700, 800/800-8001