QuStream Corp. has completed its acquisition of Fortel DTV, Duluth, Ga.-based manufacturer of video signal processing technologies for $1.8 million.
The acquisition is in line with Toronto-based QuStream's plans to aggressively expand its product portfolio--the company already has an established strong routing and switching product platform via its acquisition of PESA Switching Systems a year ago.
The deal, worth $1.8 million, includes the assumption of $360,000 in debt. QuStream will use some of its existing cash resources to pay for the acquisition. The agreement also calls for the payment of contingent consideration of $1,000,000 if certain Fortel products achieve a target revenue of $3.2 million during the 12 month period following the close of the deal.
Fortel's founder Virgil Lowe will serve as the chief technology officer of QuStream. Fortel markets its products to broadcast stations, cable and satellite facilities and production studios through an international network of distributors and system integrators.
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