Press Release

Thursday, February 27, 1997 < Prev Next >

Visio Corporation Announces Acquisition of CAD Technology and Assets of Boomerang Technology Inc

Acquisition Supports Company's Long-Term Strategy of Leading the Technical Drawing Market

SEATTLE, Feb. 27 /PRNewswire/ — Visio Corporation (Nasdaq: VSIO) today announced that it has acquired certain assets of Boomerang Technology Inc., a privately held developer of Autodesk AutoCAD-compatible software, located in San Diego, CA. Under the terms of the agreement, Visio acquired source code and certain other assets for cash payments totaling $6.7 million. Visio will account for the transaction as a purchase with the acquisition price expensed primarily as in-process R&D in the March 1997 quarter. This technology will be incorporated into a future product offering by Visio Corp.

Under a prior separate arrangement, Visio has employed nine developers from Boomerang Technology Inc. since January 1, 1997. The developers are located at a new Visio office in San Diego, CA, and will continue to develop the AutoCAD-compatible technology. Prior to forming Boomerang Technology Inc., the team of San Diego-based developers was employed by Softdesk, a leading supplier of AutoCAD-based AEC (Architectural/Engineering/Construction) software. Prior to joining Softdesk, the team developed and licensed Autodesk ADE (AutoCAD Data Extension) to Autodesk, which is an extension to the AutoCAD product.

Visio Corp. currently has a strong presence in the technical drawing market with its current product offering, Visio Technical. Visio Technical, on the market since December 1994, has already achieved a 52 percent market share in units among comparably priced products sold through retailers and corporate resellers in the technical drawing category (PC Data, Q3, 1996, Distributors Report, US).

"We see this acquisition as an important development in our long-term strategy to become a leader in the technical drawing market," said Jeremy Jaech, president and CEO of Visio Corp. "The Boomerang technology is unique and powerful in that it marries traditional CAD with the latest in Windows technology, without sacrificing any compatibility with existing AutoCAD-based drawings or solutions."

"The combination of Visio's market approach of making technical drawing available to a broad market, along with Boomerang's extensive AutoCAD compatibility, can create an opportunity for users and developers to preserve their investment in existing drawings and applications without being locked into expensive, high-end tools like AutoCAD," said Mike Bailey, president and CEO of Boomerang Technology Inc.

"We are very excited about this acquisition by Visio and believe that both customers and developers will appreciate the possibility of having a viable option to Autodesk's AutoCAD technology," said Bo Palioca, Chairman and CEO of Ketiv Technologies, a leading developer of AutoCAD AEC software.

About Visio Corp.

Visio Corporation, a leading supplier of enterprisewide business diagramming and technical drawing software, was founded in September 1990. The Seattle-based company pioneered the drawing and diagramming market with the release of Visio 1.0 in November 1992 and has since released additional Windows-based products for the creation and exchange of drawings and diagrams in business. Visio's powerful product architecture, combined with partner programs and third-party relationships in key market segments, is establishing Visio as a desktop platform standard for the creation of graphical solutions. The company markets the Visio product line in 9 languages and in more than 35 counties throughout the world.

NOTE: Visio is a registered trademark of Visio Corporation. All other trademarks, trade names or company names referenced herein are used for identification only and are the property of their respective owners.

SOURCE Visio Corp.

/CONTACT: Leslie Deitz, 206-521-4546, or for product information, Megan Prentiss, 206-521-4665, both of Visio Corp./

(VSIO)

CO: Visio Corp.; CAD Technology; Boomerang Technology Inc. ST: Washington IN: CPR SU: PDT

KW-TC — SFTH018 — 2852 02/27/97 09:02 EST http://www.prnewswire.com

Source page: http://www.thefreelibrary.com/Visio+Corporation+Announces+Acquisition+of+CAD+Technology+and+Assets...-a019171256