One Stop Systems to Acquire Concept Development

One Stop Systems, Inc. (OSS), in specialized HPCs, has signed a definitive agreement to acquire Concept Development, Inc. (CDI). 

CDI specializes in the design and manufacture of specialized high-performance in-flight entertainment systems for commercial aircraft. Its capabilities include electrical, mechanical and software design as well as extensive experience in test and certifications required for airborne systems.

The companies expect the synergies of the combined businesses to enhance the capabilities of their engineering, manufacturing and customer support, as well as broaden their market reach.

Key benefits to OSS include:
•   Access to in-flight entertainment market and CDI customers
•   Addition of technical expertise in design and manufacturing airborne equipment
•   Existing OEM design-ins and new opportunities
•   Adds $4 million to $6 million in projected annual revenue
•   Profitable operations, with 38%-42% gross margin
•   Primarily stock transaction: ~$4.9 million in stock and $1.0 million in cash

“This strategic acquisition of CDI brings together two innovative companies that focus on specialized high-performance computing, with highly complementary technologies and skill sets,” said Steve Cooper, OSS CEO. “CDI has broad experience designing and delivering high-performance systems for the aerospace and in-flight entertainment markets, which complements OSS’ capabilities in designing and manufacturing specialized high-performance computing products for rugged airborne environments, media and entertainment. Together, we have more capable resources for bringing high-performance computing to the in-flight entertainment market and others, while offering a greater value proposition to our combined customer base.”