March Networks, a leading provider of intelligent IP video and business analysis applications, announced today that it has entered into a definitive agreement to acquire Cieffe S.p.A. and its related company Insignis Technologies S.r.l.
Cieffe, based in Milan, Italy, develops high performance IP video surveillance solutions used by enterprise-class organizations across Europe, the Middle East and Asia Pacific. With a reputation for innovative design and advanced functionality, Cieffe's products are used by leading European financial institutions and a number of high profile airport, government and commercial industrial clients for mission-critical security applications. Cieffe's calendar 2007 revenue is estimated at €10 million (CAD 14.7 million). Cieffe's pre-tax profit for the 10 months ended October 31, 2007 was approximately €400,000 (CAD 600,000) and its net asset position at October 31, 2007 was approximately €1.5 million (CAD 2.0 million).
Cieffe's award-winning portfolio of interoperable encoders, IP and megapixel cameras, video analytics and advanced video management software has received numerous industry accolades, including two consecutive best-of-show awards at IFSEC, one of Europe's most prestigious security industry events. The company is currently displaying its latest innovations, including the world's first Megapixel Speed Dome camera, at IIPSEC 2008, being held at Stoneleigh Park, Coventry, UK, through to January 31.
The agreement calls for the payment by March Networks of €14.0 million in cash and €6.0 million in common shares for a total purchase price of €20.0 million, plus an earn-out component of up to €10.0 million in cash. The agreement is subject to customary closing conditions and is expected to close by the end of March 2008. Cieffe's founder and CEO, Fabrizio Colciago, will continue as Managing Director and lead the ongoing evolution and growth of the Cieffe product line within the Europe, Middle East and Africa (EMEA) region.
"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 management solutions."
