March Networks announces offer to acquire Cieffe S.p.A.
March Networks has announced that it has entered into a definitive agreement to acquire Italian company Cieffe S.p.A. and its related company Insignis Technologies S.r.l.
Based in Milan, Italy, Cieffe S.p.A develops high-performance IP video
surveillance solutions used by organizations across Europe, the Middle
East and Asia Pacific. Cieffe’s products are used by European financial
institutions and a number of high profile airport, government and
commercial industrial clients for mission-critical security
Cieffe’s calendar 2007 revenue is estimated at
$14.7 million. Cieffe’s pre-tax profit for the 10 months ended October
31, 2007 was approximately $600,000 and its net asset position at
October 31, 2007 was approximately $2.0 million.
portfolio includes interoperable encoders, IP and megapixel cameras,
video analytics and advanced video management software.
agreement calls for the payment by March Networks of about $20 million in
cash and $8.9 million in common shares for a total purchase price of $29.7 million plus an earn-out component of up to $14.8 million in cash.
The agreement is subject to customary closing conditions and is expected to close by the end of March 2008.
“This is a strategic acquisition for March Networks that
significantly strengthens our presence in the EMEA region as well as in
the high-growth commercial industrial segment,” said Peter Strom,
President and CEO, March Networks. “Cieffe’s innovative product
portfolio complements March Networks’ existing solutions and enhances
our position as a global supplier of comprehensive, open IP video