OTTAWA , March 31 /PRNewswire-FirstCall/ - March Networks(TM) (TSX:MN; AIM:MNW), a leading provider of intelligent IP video and business analysis applications, announced today that it has completed the acquisition of Cieffe S.p.A. and its related company, Insignis Technologies S.r.l. Cieffe, based in Milan , Italy , develops high performance IP video surveillance solutions used by leading European financial institutions and a number of high profile airport, government and commercial industrial clients for mission-critical security applications.
The acquisition was completed in accordance with the definitive agreement originally announced on January 30, 2008 , with a payment of (euro)14.0 million in cash plus the issuance of 1,019,252 March Networks common shares to the vendors. Including acquisition expenses, the total cash consideration for the acquisition will be approximately CAD 24 million plus any amounts paid in respect of a two year revenue-based earn-out of up to (euro)10 million. Cieffe's founder and CEO, Fabrizio Colciago, will continue as Managing Director of March Networks' European operations and lead the ongoing growth of the Company within the Europe , Middle East and Africa (EMEA) region.
About March Networks
March Networks(TM) (TSX:MN; AIM:MNW) is a leading provider of intelligent IP video and business analysis applications that enable organizations to reduce losses, mitigate risks and improve security and operational efficiency. The Company's advanced software suite includes enterprise-class video management, powerful analytics and comprehensive managed and professional services. Our software and systems are used by leading financial institutions, retailers, transportation authorities and other organizations in more than 50 countries. For more information, please visit www.marchnetworks.com.
This release contains certain forward-looking information or statements. These statements are not historical facts but reflect the Company's current expectations and assumptions regarding future results or events. The assumptions and expectations are subject to a variety of risks and uncertainties that are difficult to predict, that may be beyond March Networks' control, and that may cause actual results or events to differ materially from those expressed in the forward-looking statements. The expectations, assumptions and risks made in the preparation of or relating to the forward-looking information and statements include, but are not limited to, certain assumptions of future business following the consummation of the acquisition, March Networks' ability to achieve the expected synergies as a result of the acquisition, the strengthening of March Networks' position in the EMEA and commercial industrial markets as a result of the acquisition and the expected timing of the closing of the acquisition by the end of March, 2008. Actual results could differ materially from those expressed in any forward-looking statements due to risk factors such as (1) the integration of the Cieffe business and employees into March Networks and the achievement of expected synergies, (2) the ability of March Networks' to retain key employees of the acquired business, (3) the ability of March Networks' to compete successfully in a highly competitive and rapidly changing IP video surveillance market, and (4) the accuracy of the Company's forecasting of acquisition-related restructuring costs, allocation of the purchase price to intellectual property, goodwill and other acquisition related inventory, and other asset adjustments. These and other risks and factors are identified in March Networks' public filings with regulatory authorities in Canada which can be accessed at www.sedar.com. March Networks assumes no obligation to update these forward-looking statements as a result of new information or future events.