GN Netcom Acquires Jabra

Hand-free technology company GN Netcom (Nashua, NH) signed an agreement on May 21 to acquire headset supplier Jabra Corp. (San Diego, CA). GN Netcom specializes in the design and manufacture of telephone headsets and voice input devices for both corded and wireless applications. Together, the companies will be able to offer a broad array of products to their customers, including future Bluetooth-enabled wireless devices.

The purchase price for Jabra is $40 million plus earn-out payments totaling a maximum of $35 million. The acquistion is subject to approval by the U.S. antitrust authorities and is expected to be granted this July.

Following the merger, Jabra will continue to operate as a strategic business unit within the GN Netcom Group under the leadership of its present management team. Its operations will continue to be headquartered in San Diego. The company will continue to offer its current as well as new products under the Jabra brand.

Jabra's revenues have grown more than ten times over the last three years, from less than $4 million in 1998 to more than $40 million projected in 2000. GN Netcom will play a pivotal role in the continued growth by providing working capital, critical technology (including Bluetooth) through a technology-sharing program with its technology centers in the United States and Denmark. GN Netcom also brings strong distribution channels in Europe and Asia and combined operations expertise on a global basis. The acquisition will open important additional sales channels for GN products, especially in the United States.

Jabra's president and CEO, Vicki L. Marion, will join the management team for GN Netcom, reporting to P. Michael Fairweather, president & CEO of GN Netcom and executive vice president of the GN Netcom Group.

Edited by Ellen Jensen