Vecima Closes Acquisition of Concurrent
VICTORIA – (January 2, 2018) – Vecima Networks Inc. (“Vecima” TSX: VCM) is pleased to announce that it has closed its acquisition of the assets of the Content Delivery and Storage Business of Concurrent Computer Corporation (“Concurrent” NASDAQ: CCUR), a US-based software and solutions company that is a leader in the Video on Demand (VoD) and IP Video Content Delivery space providing breakthrough technologies in the storage, protection, transformation and delivery of video assets.
Global IP traffic is expected to triple by 2021, with IP video growing from 73% to 82% of that traffic. The combination of the two companies’ technologies, Vecima’s award-winning distributed access platform and Concurrent’s industry-leading content delivery system, is expected to help serve a larger base of service provider customers with a compelling product portfolio designed to address the surge in global Internet traffic.
“Each of our organizations has strengths and expertise that we bring to the table, and together we create a comprehensive networking and entertainment ecosystem capable of delivering class-leading quality, capacity and performance,” said Sumit Kumar, President and CEO of Vecima. “With diversified products, a greater market reach, a superior growth profile, and a strong balance sheet, we are well positioned to provide enhanced value to our customers and our shareholders.”
Total cash consideration for the transaction was US$29.0 million plus a preliminary net working capital adjustment of $1.47 million.
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.
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes the following statements:
Global IP traffic is expected to triple by 2021, with IP video growing from 73% to 82% of that traffic; The combination of the two companies’ technologies is expected to help serve a larger base of service provider customers with a compelling product portfolio designed to address the surge in global Internet traffic; Each of our organizations has strengths and expertise that we bring to the table, and together we create a comprehensive networking and entertainment ecosystem capable of delivering class-leading quality, capacity and performance; With diversified products, a greater market reach, a superior growth profile, and a strong balance sheet, we are well positioned to provide enhanced value to our customers and our shareholders.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 25, 2017, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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