InterVideo Aims to Purchase Controlling Interest in Ulead Systems
March 23, 2005
Fremont, CA - InterVideo has extended a tender offer to purchase additional shares of Ulead Systems. If accepted, InterVideo will own more than half the issued shares of Ulead.
The all-cash tender offer will be made at 30 NT (US$0.98) per share of Ulead common stock. Assuming the successful completion of the tender offer, the transaction will be valued at between US$23 and US$49 million. The deal is expected to be accretive to InterVideo’s 2005 earnings based on InterVideo’s current understanding of Ulead’s business.
Upon completion of the tender offer, InterVideo will own between 50.1 and 85 percent of the issued shares of Ulead. These figures include the 18.5 percent of Ulead’s issued shares currently owned by InterVideo, the shares to be purchased in the tender offer and an additional 1.5% of Ulead’s shares to be purchased outside of the tender offer. InterVideo has entered into stock tender agreements with several Ulead shareholders pursuant to which the shareholders have agreed to sell a minimum of 22.5 percent of Ulead’s issued shares in the tender offer.
The tender offer is scheduled to expire on April 13, 2005.
InterVideo believes that its investment in Ulead will strengthen InterVideo’s technology offering and allow the company to provide a more comprehensive digital media solution to both retail and OEM customers. Ulead’s strengths in professional DVD authoring, video editing and still image processing complement InterVideo’s tools and provide enhanced opportunities for addressing emerging and rapidly growing markets including multimedia home networking, high definition and Blu-ray DVD and multimedia mobile phones.
Upon completion of the tender offer, InterVideo and Ulead plan to commence the integration of products and technologies of the two companies.
Ulead Systems, Inc. was founded in 1989 as a developer of video, imaging and DVD authoring software for desktop, server, mobile and Internet platforms. Headquartered in Taipei, Taiwan, Ulead has over 500 employees and maintains branch offices in the US, China, Japan and Germany. In March 1999, Ulead became the first publicly traded software company in Taiwan. According to company issued press releases, Ulead’s revenues for 2004 were 1,350,009,000 NT (US$44 million) and as of September 30, 2004 the company had 818,945,000 NT (US$26.7 million) in cash and short-term investments, 2,044,435,000 NT (US$66.6 million) in total assets and no debt on its balance sheet.
“This investment in Ulead is a key component of InterVideo’s growth strategy to augment its existing presence in Asia and enhance its ability to deliver innovative products for the convergence of the consumer electronic and PC markets,” stated Steve Ro, president and CEO of InterVideo. “Ulead’s complementary product offering, strong engineering resources and broad retail presence provide significant opportunities for synergies going forward.”
For more information, visit
www.intervideo.com
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