Coolisys Technologies Inc. Enters Definitive Agreement to Acquire All Outstanding Interest
FREMONT, Calif., Aug. 07, 2017 (GLOBE NEWSWIRE) – Digital Power Corporation (NYSE MKT:DPW) (“Digital Power” or the “Company”), a company seeking to increase revenues through acquisitions and organic growth, today announced that its wholly owned subsidiary, Coolisys Technologies, Inc., (“Coolisys”) a technology-centric holding company which is dedicated to servicing the defense and aerospace sectors as well as industrial and medical based businesses worldwide has entered a Definitive Agreement to purchase all outstanding membership interest in Power-Plus Technical Distributors, LLC, a California limited liability company (“Power Plus”).
Power-Plus is in the business of transforming standard off-the-shelf power supplies into fully tested, plug-and-play power systems specifically tailored to meet customer applications. For 26 years, Power Plus has designed and delivered cost-effective power solutions for hundreds of companies, thousands of applications, and for almost every industry. With annual revenues for 2016 of over $2M and $400K in EBITDA (on a non-GAAP basis), Power-Plus distributes nationwide over 350 products including more than 85-lines of power supplies and about 40-lines of power-related electronic components. Power-Plus is led by its founder and CEO, William H. “Bill” Gordon, whom has a skilled sales and marketing team that is known to provide advanced technical expertise and world-class customer service. Power-Plus is headquartered in Sonora, California with facilities that met applicable safety requirements and quality standards certified by TUV and are UL-approved and certified.
Amos Kohn, the Company’s President and Chief Executive Officer, stated, “Coolisys Technologies is very pleased and excited to announce our first strategic acquisition, Power-Plus Technical Distributors, with their extensive network of customers and commercial relationships, their fine line of products and their dedication to excellent customer service and value. Adding Power-Pus to our power solutions product group brings the expertise of value-added integration of electronic power supply solutions that provide significant performance advantages and substantial value to highly focused technology. The acquisition of Power-Plus is a part of our growth strategy and assists with our objective to expand our reach in North America and throughout worldwide markets. We foresee this acquisition bringing added value to our shareholders and assisting Coolisys to unlock value throughout its subsidiaries.” The Company is purchasing Power-Plus for $850,000 of which $198,000 will be to pay off debt with the remainder to be paid out in cash over time. The Company said it anticipates the transaction to close on or around September 1, 2017. For further details, the Company encourages its shareholders, investors and others to refer to its 8-K report filed today with the Securities and Exchange Commission at www.sec.gov.
As previously reported on August 4, 2017, the Company also stated it expects to report its 2nd quarter financials on or about August 14, 2017 and expects to change its name, Digital Power Corporation, and its stock symbol later this year.
About Digital Power
Headquartered in Fremont, CA, Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Our products are used in the most demanding communications, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. The Company’s wholly owned subsidiary, Coolisys Technologies, Inc. a technology focused developer and manufacturer that services the defense, aerospace, medical and industrial sectors, has 2 subsidiaries. Digital Power Limited is based in Salisbury, UK is wholly-owned. Microphase Corporation, is a majority owned subsidiary, with its headquarters in Shelton, CT (203) 866-8000. Website: www.microphase.com. Digital Power’s headquarters is located at 48430 Lakeview Blvd., Fremont, California, 94538; 1-877-634-0982. Website: www.digipwr.com.
For Investor Relations inquiries: IR@digipwr.com or 1-888-753-2235.
The foregoing release contains “forward looking statements” regarding future events or results within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning the Company’s current expectations regarding revenues from contracts and operations on a consolidated basis and that the Company will be able to complete and close this acquisition.. The Company cautions readers that such “forward looking statements” are, in fact, predictions that are subject to risks and uncertainties and that actual events or results may differ materially from those anticipated events or results expressed or implied by such forward- looking statements. The Company disclaims any current intention to update its “forward looking statements,” and the estimates and assumptions within them, at any time or for any reason. More information about potential risk factors that could affect the Company’s business and financial results are included in the Company’s most recent filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available on the Company’s website at www.digipwr.com.