MONMOUTH JUNCTION, N.J. — In an effort to create one of the 10 largest global players in the video surveillance market, Infinova will acquire IP video provider March Networks for $90.1 million (Canadian) or $88.2 million (U.S.), the company announced. Infinova will pay $5 Canadian ($4.90) per share.
“This deal is consistent with our strategy to accelerate growth and expand in the Asian market,” March Networks President and CEO Peter Strom says. “Infinova offers March Networks a broader geographic footprint, access to the world’s fastest growing market and a complementary fit with our respective product lines.”
March Networks’ shareholders, as well as Infinova’s shareholders in China must approve the deal before it goes through, according to a statement. Earlier this year, Infinova raised $300 million through an initial public offering (IPO) on the Shenzhen Stock Exchange. The deal is also subject to regulatory approval in Canada.
The announcement comes as March Networks reported a loss of C$2.3 million, or 13 Canadian cents per share, compared with a profit of C$1.2 million, or 7 Canadian cents per share a year ago, Reuters reports.
March Networks will continue to operate independently out of its Ottawa headquarters, and keep its name and other brands, according to Infinova CEO Jeffrey Liu. The deal is expected to close in the fourth quarter of fiscal 2012.
To view Strom discuss the deal, click here.