Posted on November 9, 2009
Move will bring expanded product line, experienced team, and new applications
Ottawa, ON – November 9, 2009 –International Datacasting Corporation (TSX:IDC) ("IDC"), a leader in advanced solutions for satellite distribution of broadband multimedia content, announced today that it has entered into a non-binding term sheet to acquire select product lines and related technology from San Diego-based Logic Innovations, LLC ("Logic Innovations").
The Logic Innovations product line of leading-edge broadcasting solutions includes: transport stream multiplexing, IP multicasting and unicasting, as well as broadcast record and playback products for the terrestrial, satellite, and cable broadcast markets. Logic Innovations’ particular areas of expertise are digital audio/video and data communications technologies including ATSC, DVB, and MPEG.
“We are excited about this strategic acquisition,” said Ron Clifton, President and CEO of IDC. “Logic Innovations has been one of the pioneers in the broadcast industry. They will bring first-class new products to our portfolio of multimedia solutions and an impressive customer list. The people and technology are an excellent fit with our recent acquisition of Tiernan Video. This move will strengthen our San Diego base of operations and allow us to better serve our combined international customer base.”
The transaction is to be structured as an asset purchase agreement pursuant to which IDC would acquire the assets of Logic Innovations sufficient to maintain the business as a going concern. The maximum aggregate purchase price (which shall be payable by IDC in cash) for the purchased assets is not to exceed US$750,000.
Although the transaction is not expected to have a material effect on the operations of IDC, the addition of the assets to be purchased from Logic Innovations to IDC’s established product fold as well as the hiring of certain of Logic Innovations’ employees who are expected to join the IDC team, is expected to be accretive to IDC’s product offerings.
The completion of this transaction is subject to standard terms and conditions, including Board and regulatory approvals as well as due diligence. The transaction is expected to close on or before November 30, 2009. A portion of the cash payment for the assets will be subject to certain earn-out provisions. Additional details of the transaction will be disclosed through the appropriate regulatory filings