Posted on December 7, 2009
Ottawa, ON – December 7, 2009 – – International Datacasting Corporation (TSX:IDC), a global leader in providing advanced solutions for the distribution of broadband multimedia content, announced today that it has completed the acquisition of select product lines and related technology from San Diego-based Logic Innovations, LLC.
Logic Innovations was founded in 1986 and launched their first digital broadcast product line in 1996. Today they have a family of leading-edge products developed for the terrestrial, satellite and cable broadcast markets, with solutions that include transport stream multiplexing, IP multicasting and unicasting, as well as broadcast record and playback products. Logic Innovations serves an international customer base with primary focus in the US with marquee clients that include ABC, NBC, FOX, DirecTV and the Associated Press. Logic Innovations products are present in most major satellite service provider teleports around the world. Their products are also installed in the majority of ATSC digital transmission systems that have replaced much of the legacy NTSC analog television broadcast systems in North America.
The maximum aggregate purchase price for the acquired assets is US$600,000, payable in cash, of which US$250,000 was paid on closing and US$300,000 was placed in escrow. Payment of the remaining portion of the purchase price and release of the escrow has been deferred for 12 to approximately 17 months and is subject to customary post-closing adjustments, including an earn-out on a small portion of the balance. The acquired assets, in addition to product line technologies and intellectual property, include approximately US$350,000 in inventory.
“We are pleased to announce the successful completion of this acquisition,” said Ron Clifton, President and CEO of International Datacasting Corporation. “Adding the Logic Innovations technologies to our product portfolio is a good step in further growing the Company and strengthening our long-term competitive position in our targeted broadcast markets. This transaction rounds out our product suite, enabling us to address a much broader range of broadcast applications and offer more complete end-to-end network solutions. In addition to the technologies and product lines, we are also gaining an experienced team of people who will increase our critical mass by adding to our Tiernan base of operations in San Diego
“Logic Innovations had reached the point in our evolution where we felt we required the support of a much larger organizational infrastructure to drive continued growth and get our leading edge products to market,” said Suzana Brady, previously VP Marketing and Sales for Logic Innovations. “IDC’s network of distributors and regionally based global sales force and their much larger customer service network will allow us to get products to market sooner and better serve our customers. In addition, we believe that together with IDC’s development team, we will be able to enhance the features of our offerings to further differentiate our products in the marketplace as well as provide solutions for a broader range of broadcast applications.”
The entering into a non-binding term sheet to acquire certain assets of Logic Innovations LLC was previously announced on 9 November 2009.