Media assets software and solutions specialist Concurrent Computer Corporation has entered into a definitive agreement to sell all of the assets of its Content Delivery & Storage Business to Vecima Networks for a base purchase price of $29 million, subject to adjustment for normalised net working capital.
Headquartered in Victoria, British Columbia, Vecima is a leading designer and manufacturer of network technology solutions. The proposed transaction, which has been approved by the Board of Directors of both companies, is subject to various terms and conditions including stockholder approval from Concurrent.
“Vecima believes that the rapid growth in IPTV delivery across both MVPD private CDNs and OTT providers will continue to accelerate. Concurrent is a recognised leader in storing, protecting, transforming and delivering media assets. Adding their solutions to our industry-leading broadband Internet access platforms, will allow us to deliver an end to end, massively scalable video and data solution to the market,” said Sumit Kumar, President & CEO of Vecima Networks. “We are also thrilled to have Concurrent’s strong and highly skilled team join the Vecima family, enhancing our position as a leading vendor to our collective base of Tier 1 service provider customers,” added Kumar.
“At closing, we anticipate that Concurrent will have a debt free balance sheet with approximately $67 million in pro forma working capital and substantial retained tax assets,” said Derek Elder, President & CEO of Concurrent. “The Board of Directors has established an investment committee to evaluate options to maximise the value of the Company’s remaining assets, which, following the closing of the Vecima transaction, will consist primarily of cash and cash equivalents and the Company’s remaining net operating loss carryforwards under federal, state, and foreign tax laws.”
Concurrent expects to file a preliminary proxy statement with the US Securities & Exchange Commission within 30 days.
Certain Concurrent stockholders have entered into voting agreements to vote in favour of the proposed transaction. The shares of Concurrent common stock currently owned by these supporting stockholders represent, in the aggregate, approximately 17 per cent of the issued and outstanding shares of Concurrent common stock.