With reference to the press release on the acquisition ( was not able to post a reply in that thread for some strange reason, Webmaster, hence this new thread - sorry - and the formatting on this one is wonky)

Not 'rumour-mongering', just trying to assess the potential impact of this situation.

Over the years, there have been many accounts of mergers, buyouts, takeovers - call them what you will. Most (but not
all), have resulted in changes in the relationships between the parent and subordinate company, from very minor to catastrophic.

Some major examples include:

Oracle's buyout of Peoplesoft
Compaq's acquisition of Digital Equipment Corp
HP 'merging' with Compaq ( who had just swallowed DEC)

( the list is endless)

In each of the above situations, products, support and most importantly Customers were negatively impacted. This was
despite a lot of flowery legalese and rhetoric in the press releases assuring everyone that there was no basis for
concern and the change would "also complement each other's technology base" ,yada yada yada...

The fact remains that in today's business climate there are NO guarantees, and companies will do what's best for their
bottom line. Acquiring a smaller company, 'siphoning off' their technology or intellectual property to serve other
agendas and then marginalizing or closing down the smaller entity is by no means rare.

If this action affects yet another 'third party' company that was utilizing the acquired company's OEM products and
'value-adding' them ( as SCT does with Superchips core products - correct me if I'm wrong here ), then the third party
organization is potentially at risk. Microsoft does this all the time - they call it 'innovation' but what it really is, is eliminating the competition.

Does anyone really know if MSD ( or Gryphon Investments ) give a rat's patootie about SCT? What if they want to get into the 'custom tuning ' business themselves?

As a customer I have a legitimate right to be concerned that my investment will remain useful, and a legitimate right to ask for clarification.

I am not suggesting that this particular buyout will necessarily result in terminated product lines and/or support, but

I reserve the right to ask, and ask I did over at SCT.

To label that action as 'rumor-mongering' is grossly unfair. I was not the one to initially provide the link to press release...

I'm simply seeking the truth, and perhaps some modicum of assurance.

Thanks

 

Hi MGD,

"Rumor-mongering" are your words, not mine – and it's disingenuous to portray what I said as some kind of attack against you - not only dead wrong, but rather silly.
Making assumptions & starting speculation that SCT, who is not even involved in this deal (or Superchips, Inc., for that matter) is somehow automatically going to be "negatively impacted" is unfounded speculation. Of ultimate relevance is the fact that when MSD was purchased 2 years ago by the exact same entity, out of the approximately 400 employees they had at that time, all but 2 are still there as of the date of acquisition of Superchips, Inc.

SCT is a separate company whose majority ownership, management, products & operations have not changed as a result of this deal. SCT is a well-run company with some people I care about that has an extremely bright future - one that any company in this industry would be proud and lucky to have. Speaking as their FIRST AND OLDEST general release dealer and having FAR more invested in their outcome than you, and I can tell you there is no basis for any such “concern.” If anyone were going to have legitimate reason for concern, it would be us. Additionally, the people who actually run Superchips Inc. are still there! The original owners of Superchips, Inc. (the company that is actually involved) are wonderful people who worked long & hard, and simply wanted to retire as they have gotten older. They are people I have known for a long time, as our company is their oldest distributor in America. The company is extremely healthy in every aspect including financially, and the envy of the industry.

Bottom line - it was a good move, and has no impact on SCT. There is nothing to "worry" about, nor any legitimacy in speculation that this is somehow "negatively impacting" companies that are actually involved.

I truly hope that helps your understanding of this MGD, & wish you well.

 

Thanks, Mike.

Indeed this was the clarification and assurance I was looking for.

My company was affected hugely by the 3 example acquisitions I mentioned, so I understandably 'cringe' when I'm made aware of another one;-))...

I'll take my lumps, of course - Anita already knows how silly I can be...

Irony is that most elusive of thought patterns - the ability to understate, yet have equal effect.

People sometimes think Americans lack this subtlety; but you have it in spades, (as do I).

As always, silly old me wishes you well too.

And eagerly awaiting my Troyer Performance sticker ;-))

Cheers

 

Hi MGD,

Thanks for your last response - it was greatly appreciated & gave me the understanding I needed on where you're coming from in all this. Now I can understand your perspective, apparently having experienced what sounds like some (to put it mildly?) less-than-desirable consequences of those mergers/acquisitions you spoke of - good grief, no wonder you had concerns!

Speaking of computer-related companies, it's a small world - one of the companies my wife & I owned was heavily involved in the computer industry - so I have heard a tiny bit about the companies you mentioned, though probably not anywhere near what it sounds like you know of them. Just speaking as someone who liked the DEC "slice" concept & the company in it's heyday, I never liked what happened to DEC - and I don't like some of the tiny bit I've heard with regard to HP/Compaq's merger, either.

I cannot *stand* the modern implementation of merger-to-grow (read: crush for greed) method the way it is unfortunately practiced all too often, especially since the 80's. Hundreds of thousands (maybe millions) of people who gave significant portions of their lives to help build great companies losing their jobs, competing products bought just for their ultimate destruction to achieve an effective monopoly, etc. Not just to be able to compete & thus survive in the marketplace, but all too often just sheer greed, under the guise of "enhancing shareholder value." But then, I don't like what day traders have done to oil prices (just for one example), either - don't get me started..................

This Superchips Inc. deal was a *very* good move, and we are excited for their future, and that of SCT as well.

Thanks again for your post & have fun,