Proposed Transaction to Expand Vecima’s Technology, Markets and Global Presence
VICTORIA – (October 16, 2017) – Vecima Networks Inc. (“Vecima” TSX: VCM) today announced that it has entered into a definitive agreement with Concurrent Computer Corporation (“Concurrent” NASDAQ: CCUR) to acquire all of the assets of its Content Delivery and Storage Business for US$29.0 million in cash.
Concurrent is a US-based software and solutions company that provides breakthrough technologies in the storage, protection, transformation and delivery of video assets. The company is a leader in the Video on Demand (VoD) and IP Video Content Delivery space, and supplies its technologies to many of the same Tier One Cable MSOs that Vecima services.
The business combination will support and accelerate Vecima’s ability to respond to the sea change occurring in the world of video. The generation, delivery and consumption of video are fundamentally shifting to IP-driven technologies and multiscreen services that empower consumers with choice. Vecima’s strategic vision has led the company to a transaction that ideally positions it to deliver and, in turn, capitalize on this global phenomenon. Vecima’s organic development of gigabit internet access platforms, together with Concurrent’s industry-leading IPTV delivery platforms unlock numerous synergistic opportunities in the evolving IP video space. The two companies together are also aligned to serve a global footprint including the Americas, Europe and Asia.
“As global IP traffic surges and broadband speeds accelerate, the rise in video-based services like on-demand IP video and streaming is increasing exponentially,” said Sumit Kumar, President and CEO of Vecima. “Concurrent’s video delivery system dovetails perfectly with Vecima’s suite of leading edge cable platforms to provide the cable industry with a compelling IP video and broadband access ecosystem. Adding Concurrent’s broad portfolio of products to Vecima’s industry-leading Broadband Access Platforms results in a powerful combination that allows for delivery of an end-to-end, massively scalable video and data solution, both to existing and new customers.”
Headquartered in Atlanta, Georgia, Concurrent also has offices in Japan, along with sales and support staff across Europe. The combined operations will significantly enhance Vecima’s reach in the global market. Concurrent’s Delivery and Storage Business employs approximately 100 people and generated revenues of US$27.6M for the fiscal year ended June 30, 2017. Vecima plans to continue operating the business under the Concurrent brand. While it will retain an independent operating model, Vecima expects to leverage the complementary nature of the two companies’ product lines to provide immediate benefits to customers, address large commercial opportunities, and build a stronger, global player in its markets.
“We are very excited to enter into this agreement and believe that Concurrent will be an excellent addition to the Vecima brand,” said Derek Elder, President and CEO of Concurrent.
Mr. Kumar added, “Together we intend to create a leading technology business with a larger, more diversified product portfolio, a superior growth model, a broader market profile, and a proven management and operating team.”
The proposed transaction is subject to various terms and conditions, including approval by Concurrent shareholders, and is anticipated to close by the end of calendar year 2017. Vecima expects that the business will generate in excess of US$5.5 million annualized Adjusted EBITDA shortly after closing and capturing synergies, including the removal of Concurrent’s public company costs.
Concurrent (NASDAQ: CCUR) is a global software and solutions company that develops applications focused on storing, protecting, transforming and delivering high value media assets. It serves industries and customers that demand uncompromising performance, reliability and flexibility to gain a competitive edge, drive meaningful growth and confidently deliver best-in-class solutions that enrich the lives of millions of people around the world every day. Visit www.concurrent.com for further information or follow the company on Twitter: www.twitter.com/Concurrent_CCUR.
About Vecima Networks
Vecima Networks Inc. (TSX: VCM) is a globally recognized leader in creating breakthrough technology solutions that empower network service providers to connect people and enterprises to information and entertainment worldwide. Vecima products for the cable industry allow service providers a cost-effective Last Mile Solution® for both video and broadband access, especially in the demanding business services market segment. Vecima also provides fleet managers the key information and analytics they require to optimally manage their business under the Contigo, NERO Global Tracking, and Fleetlynx brands. More information is available at our website at www.vecima.com.