French-based telco giant Alcatel is purchasing Canadian-based telco TV company iMagicTV for $30 million. Alcatel, which currently owns 16 percent of iMagicTV, will get all outstanding shares of iMagicTV that it doesn't currently own in exchange for Alcatel Class A American Depository Shares. iMagicTV expects the deal to close in the Q2 of 2003.
For those with a stake in iMagicTV, the transaction--which is still subject to a number of conditions including the approval its shareholders--would give them about $1.20 per share. In separate agreements, iMagicTV shareholders representing around 50 percent of the outstanding shares have agreed to support the transaction.
iMagicTV is a provider of software products that allow telephone companies and other service providers to deliver multi-channel TV and interactive media services over broadband networks. "By joining forces with Alcatel, our customers benefit by being able to work with a single partner who can deliver a tightly integrated and comprehensive IP based video solution," said Gary Pond, iMagicTV's president and CEO. "I am very pleased ... [that we will] be playing such a key strategic role in Alcatel's broadband entertainment portfolio."
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