The deal is structured as euro 14.0 million in cash and euro 6.0 million in common shares, with an additional earn-out component of up to euro 10.0 million in cash, taking the possible final price to euro 30 million.
“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.”
March Networks expects the deal to close by the end of March this year. It estimates Cieffe’s calendar 2007 revenue at euro 10 million and pre-tax profit for the 10 months ended October 31, 2007 at approximately euro 400,000.
Cieffe’s founder and CEO, Fabrizio Colciago, will continue as Managing Director.
