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SeaChange agrees sale of assets to Enghouse
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Source: Alamy.com
TV technology outfit SeaChange has agreed to sell its assets to an affiliate of Canadian outfit Enghouse Systems.
Under the agreement, Enghouse will acquire substantially all of SeaChange’s assets related to its product and services business and will assume certain liabilities, for a total price of US$39 million, less SeaChange’s cash and cash equivalents at closing. The company currently anticipates net proceeds to SeaChange of between US$21 to US$23 million upon Closing.
The deal, which is expected to close in early May, brings to an end Seachange’s previous agreement to sell to software conglomerate Partner One, which it struck in March.
Similar to the Partner One Transaction, a major stockholder that owns approximately 30.5% of SeaChange’s common stock, has agreed to vote its shares to approve the deal.
SeaChange exercised its right to terminate the Partner One Agreements having determined that Enghouse’s offer delivered better value, and will pay a US$1.0 million termination fee to Partner One.
“When we set out to identify a strategic partner for SeaChange, our two key goals were to maximize stockholder value and to find a larger home for the SeaChange assets within which the business could scale. With Enghouse’s commitment to SeaChange and their customer-centric vision for the business, both goals are met. Enghouse has a remarkable track record of embedding software businesses into their highly efficient operational framework, and we are looking forward to seeing SeaChange thrive within the Enghouse family,” said Chris Klimmer, CEO at SeaChange.
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