DragonVenture’s Portfolio Company Acquired for $100 Million

Palo Alto, California, April 7, 2004

Silicon Valley based cross-Pacific venture capital and consulting firm DragonVenture, Inc. happily witnesses another milestone in its venture capital business when the overall venture investments still holds a grim outlook. One of its portfolio company, OSA Technologies, Inc., was acquired by Avocent for approximately $100 million.

OSA Technologies, Inc., a privately-held company located in San Jose, California with offices in Shanghai and Taipei, is a leader in embedded manageability firmware and software using Intelligent Platform Management Interface (IPMI) solutions.

In September 2000, OSA secured $10M in Series A funding from strategic investors including DragonVenture, Intel Corporation, Storm Ventures, Global Internet Ventures, and leading server, storage, and networking manufacturing houses in Taiwan.

OSA was acquired for approximately $100 million in cash and stock, plus the assumption of liabilities and unvested employee stock options. The purchase price for the outstanding OSA shares and vested options consisted of approximately $52 million in cash, which was funded from available cash and investments, and 1.3 million shares of Avocent stock valued at approximately $48 million.

“DragonVenture has been advocating the early stage investment and incubation in the entrepreneurs and their leading edge technology companies even during the historically downturn of economy in the past few years. Mark Lee, founder and the CEO of OSA who has been working with us closely further confirmed our strategy.” Stated Bobby Chao, the Chairman of DragonVenture.

“The acquisition of OSA accelerates our pursuit of embedded management technologies and provides Avocent with a solid platform to extend its hardware and software solutions into new markets," stated John R. Cooper, president and chief executive officer of Avocent Corporation.

Click here for media coverage of the acquisition.