COMPLETION OF ACQUISITION OF ELO TOUCH SOLUTIONS CUSTOMER FAQ
Q1. What is being announced?
A. The Gores Group, an investment firm based in Los Angeles, California, is announcing that it has completed the acquisition of the Elo TouchSystems business from TE Connectivity (NYSE: TEL). The name of the new standalone company will be Elo Touch Solutions.
Q2. Why did TE decide to sell the Elo TouchSystems business to The Gores Group?
A. TE continually evaluates its business and product portfolio to assure they are in alignment with the overall, long-term strategy. While Touch Solutions is a strong business, it addresses different markets and applications relative to TE’s other businesses.
Q3. Who is The Gores Group?
A. The Gores Group is an investment firm focused on investing in mature technology businesses with significant new growth opportunities. As part of Gores’ portfolio, Elo Touch Solutions will become a standalone company.
Q4. How much is the purchase price?
A. The purchase price is $380 million in cash.
Q5. What are some key benefits of the acquisition?
A. The new company, Elo Touch Solutions, will be a standalone entity providing high quality, innovative products and will strive to provide customers with the best value proposition in the industry. Being an independent company allows us to increase our focus on the core markets and customers we serve. Customers can expect the same unmatched quality, performance and customer service they are used to. In addition, we will be expanding our product and technology offerings in the near future to reinforce our position as a premier global provider of commercial touch solutions.
Q6. What comprises the Elo Touch Solutions business?
A. The business will continue to develop, manufacture, and market a complete line of touch screens, touch monitors, and all-in-one touch computers under the Elo Touch Solutions brand. Elo touch products are available for diverse applications in retail, point-of-sale (POS), kiosk, medical, industrial, hospitality, transportation, automotive, mobile and gaming markets.
Q7. How will the sale impact me as a customer of Elo TouchSystems/ Elo Touch Solutions and my purchase of Elo products and services?
A. We remain committed to serving the needs of our Touch Solutions business customers and continuing to bring new, innovative products and services to market. As a result, we do not anticipate an interruption in the delivery of the products and services you currently receive.
Q8. What will happen to my sales and service contacts?
A. We are working hard during the transition period to provide a seamless experience for our customers and will continue to communicate proactively as we refine our processes to serve you better. As part of this transaction, Elo Touch Solutions will continue to be supported by TE Connectivity* business systems and logistics until our own standalone solutions are fully functional. There should be no visible operational changes in the near term. Your Elo Touch Solutions support team will coordinate directly with you as we approach the transition date for any process changes that might impact you.
Q9. Where is the Elo Touch Solutions business located?
A. The business is currently headquartered in Menlo Park, California and has operations in Rochester, New York; Kessel-Lo, Belgium; Shanghai and Suzhou, China; Boulogne-Billancourt, France; Yokohama, Japan; and Taipei, Taiwan. Over the next several months, the parts of the Elo business located on TE campuses will relocate to new facilities within the general vicinity of their current location.
Q10. Who will lead the new company?
A. The current Elo Touch Solutions management team will remain in place headed by the current GM Doug Means as CEO.
Q11. What is TE’s history with the Elo Touch Solutions business?
A. The Elo TouchSystems business was part of Raychem Corporation, which was acquired by Tyco International in 1999 and became part of the TE Connectivity (formerly Tyco Electronics) business.
Q12. What are the plans for Elo TouchSystems brand?
A. Elo TouchSystems is widely recognized as a preeminent brand in the touch systems industry and well-known for delivering a superior breadth of high-quality and reliable offerings. As a pioneer and global leader in high-performance touch solutions, Elo Touch Solutions will be well-positioned in the industry due to its premier brand name and strong relationships with customers and channel partners. We plan to expand its offerings through investment in organic growth and strategic acquisitions.
Q13. What changes should be expected by partners?
A. In the near term, technology and channel partners should expect no changes as Elo Touch Solutions will continue to operate in a business-as-usual manner. We will be working through the details in the coming months on how to best leverage this unique opportunity for the Elo business to the benefit of customers, partners and employees. The Gores Group is working closely with the Elo Touch Solutions management team to build a strategy that will capitalize on both Gores’ and Elo’s existing expertise and identify opportunities to expand capabilities and offerings.
Q14. Is today’s announcement an acknowledgement of global economic improvement?
A. The Gores Group sees continued, sustained growth in the touch industry and related technologies on a global scale. The influence of key regions – Asia, Middle East, and Latin America – will continue to drive our customer’s demands for innovative touch solutions across multiple business sectors. Drawing on the 40+ years of Elo TouchSystems history, we’ll continue to make research, development and business growth decisions in alignment with global customer demands.