ATLANTA, Oct. 16, 2017 (GLOBE NEWSWIRE) -- Concurrent Computer Corporation (NASDAQ:CCUR) has entered into a definitive agreement to sell all of the assets of its Content Delivery & Storage Business to Vecima Networks Inc. (TSX:VCM) for a base purchase price of $29 million, subject to adjustment for normalized net working capital. Headquartered in Victoria, British Columbia, Vecima is a leading designer and manufacturer of innovative network technology solutions. The proposed transaction, which has been approved by the Board of Directors of both companies, is subject to various terms and conditions including stockholder approval from Concurrent.
“Vecima believes that the rapid growth in IPTV delivery across both MVPD private CDNs and OTT providers will continue to accelerate. Concurrent is a recognized leader in storing, protecting, transforming and delivering media assets. Adding their solutions to our industry leading broadband internet access platforms, will allow us to deliver an end to end, massively scalable video and data solution to the market,” said Sumit Kumar, President & CEO of Vecima Networks. “We are also thrilled to have Concurrent’s strong and highly skilled team join the Vecima family, enhancing our position as a leading vendor to our collective base of Tier 1 service provider customers,” added Mr. Kumar.
“At closing, we anticipate that Concurrent will have a debt free balance sheet with approximately $67 million in pro forma working capital and substantial retained tax assets,” said Derek Elder, President & CEO of Concurrent. “The Board of Directors has established an investment committee to evaluate options to maximize the value of the Company’s remaining assets, which, following the closing of the Vecima transaction, will consist primarily of cash and cash equivalents and the Company’s remaining net operating loss carryforwards under federal, state, and foreign tax laws.”
Concurrent expects to file a preliminary proxy statement with the U.S. Securities & Exchange Commission within 30 days.
Certain Concurrent stockholders have entered into voting agreements to vote in favor of the proposed transaction. The shares of Concurrent common stock currently owned by these supporting stockholders represent, in the aggregate, approximately 17% of the issued and outstanding shares of Concurrent common stock.
Needham & Company, LLC served as exclusive financial advisor to Concurrent for this transaction.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) is a globally recognized leader in creating breakthrough technology solutions that empower network service providers to connect people and enterprises to information and entertainment worldwide. Vecima products for the cable industry allow service providers a cost-effective Last Mile Solution® for both video and broadband access, especially in the demanding business services market segment. Vecima also provides fleet managers the key information and analytics they require to optimally manage their business under the Contigo, Nero Global Tracking, and FleetLynx brands. More information is available at www.vecima.com.
About Concurrent
Concurrent (NASDAQ: CCUR) is a global software and solutions company that develops applications focused on storing, protecting, transforming and delivering high value media assets. We serve industries and customers that demand uncompromising performance, reliability and flexibility to gain a competitive edge, drive meaningful growth and confidently deliver best-in-class solutions that enrich the lives of millions of people around the world every day. Offices are located in North America, Europe and Asia. Visit www.concurrent.com for further information and follow us on Twitter: www.twitter.com/Concurrent_CCUR.
