HERZLIYA, ISRAEL: Optibase today agreed to sell its remaining video business to Vitec Multimedia, a video compression specialist in Chatillon, France. (This Vitec does not appear to be part of the Vitec Group of camera support companies.)
Under deal terms approved by the board of directors of both companies, Vitec will pay the Optibase $8 million in cash of which $1 million will be deposited in escrow for a two-year period as a security, inter alia, for breach or material inaccuracy relating to Optibase’s representations and warranties. In addition, Optibase and Vitec agreed on an earn-out mechanism pursuant to which 45 percent of Vitec’s revenues deriving from the Optibase exceeding $14 million the year after the deal closes will be paid to Optibase.
Vitec deposited $500,000 in escrow to be paid to Optibase if the deal doesn’t go down within an undisclosed timeframe, barring nonfulfillment by Optibase. The transaction is expected to close during the second quarter pending shareholder and regulatory approval
“Following an offer from Vitec, we have decided to pursue this opportunity as we believe that Vitec is the right company to ensure the continuity of the business in its existing markets as well as maintaining the Optibase brand,” said Tom Wyler, president and CEO of Optibase.
Shares of Optibase (NASDAQ) rose 16 percent on the news to $1.46. The company diversified into real estate last year, and will retain that division of the business.
November 11, 2009: “Optibase 3Q Revenue Dips 48 Percent”
Video compressor Optibase its third quarter with revenues of $3.2 million compared to $6.6 million a year ago. Net loss was $700,000 compared to $1.8 million a year earlier.
August 4, 2009:“Optibase Cuts 2Q Loss on Reduced Revenues”
Optibase, a video compression specialist, reported a $1 million loss for the second quarter on revenues down 42 percent compared to a year ago.
May 12, 2009<“Optibase Posts 1Q Profit”
Video compression specialist Optibase ended the first quarter of 2009 with net income of $2.9 million, or around 18 cents a share, on revenues of $3.6 million.
February 26, 2009“>Optibase Revenues Fall”
Optibase 4Q08 revenues dipped by more than one-third compared to the year-earlier quarter-- $3.6 million for the three months ending Dec. 31, 2008, compared to $5.6 million for 4Q07.
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