On December 16, Leitch Technology announced today it has entered into a definitive agreement to acquire Inscriber Technology, based in Waterloo, Ontario. Inscriber is a privately held video software company that develops SD and HD television graphics and digital signage products for the broadcast and video post-production markets. The companies expect to close the transaction in early January 2005, subject to the satisfaction of customary closing conditions and regulatory approvals. The total purchase price is $18 million Cdn, including the assumption of $1.5 million in debt. The purchase will be funded through Leitch's existing cash balances. Inscriber extends Leitch's position in the market with a complementary product range focused on broadcast graphics, content branding and logo generation, enabling an Integrated Content Environment (ICE) that will streamline workflow for broadcast and media companies, the customer base currently served by both companies.
"Our customers will benefit from an extensive range of products that are complementary to our existing Leitch offering," said Tim Thorsteinson, president and CEO of Leitch Technology. "This acquisition is one more step in our commitment to focus on broadcast television customers - providing them with technologically advanced, comprehensive television equipment solutions with premium service. Inscriber's product line will add expansive software design capability that will allow us to leverage R&D resources from both companies and propagate further integration of hardware platforms with software."
"Inscriber has a complementary customer base to Leitch and adds technical prowess in the graphics software domain that will only become stronger with this acquisition," said Dan Mance, Inscriber president and founder. "With Leitch, we will continue our dedicated customer focus on solutions that are open and that help broadcasters and production facilities create leading-edge graphics and branding imagery. Our software leadership will be enhanced within the Leitch brand."
Inscriber is expected to contribute approximately $14 million Cdn in revenue annually, with gross margins over 60 percent. They are expected to contribute positive earnings and will continue to operate out of Waterloo, Ontario, just southwest of Leitch's Toronto-based offices. Mance, Inscriber's founder and president who is a respected industry veteran, will become the chief technical officer of Leitch. Randy Fowlie, currently the COO of Inscriber, will run the broadcast graphics product line within the Leitch organization.
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