Leitch Technology to Acquire Inscriber
December 17, 2004
Toronto, ON - Leitch Technology will be acquiring Inscriber Technology Corporation.
Inscriber is a privately held video software company that develops SD (Standard Definition) and HD (High Definition) television graphics and digital products for the broadcast and video post-production markets.
The companies expect to close the transaction in early January 2005, subject to closing conditions and regulatory approvals. The total purchase price is $18 million Cdn, including the assumption of $1.5 million in debt. The purchase will be funded through Leitch's existing cash balances. Inscriber extends Leitch's position in the market with a complementary product range focused on broadcast graphics, content branding and logo generation, enabling an Integrated Content Environment (ICE) that will streamline workflow for broadcast and media companies, the customer base currently served by both companies.
Inscriber has been in business for nearly 20 years and has installations in over 110 countries. By combining Inscriber's line of broadcast graphics systems, still and clip stores, media servers and digital signage solutions with Leitch's content production, storage, processing, transmission, and Videotek test, measurement and monitoring products, Leitch will offer a comprehensive array of products, technologies and services for the television and emerging digital signage and display marketplace, the copmanies described.
Inscriber is expected to contribute approximately $14 million Cdn in revenue annually, with gross margins over 60 percent. They are expected to contribute positive earnings and will continue to operate out of Waterloo, Ontario, just southwest of Leitch's Toronto-based offices. Leitch is a leading supplier of high-performance video systems for the professional television industry, including the Velocity line of nonlinear editing systems.
Dan Mance, Inscriber's founder and president, will become the chief technical officer of Leitch. Randy Fowlie, currently the COO of Inscriber, will run the broadcast graphics product line within the Leitch organization.
For more information, visit
www.inscriber.com
or
www.leitch.com
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