August 5, 2008
Scopus Video Networks to Acquire Optibase Business
Scopus Video Networks has entered into a non-binding term sheet to acquire the business of Optibase, the company's principal shareholder and provider of encoding, decoding, video server upload and streaming solutions for telecom operators.
Pursuant to the term sheet, Scopus will acquire certain assets and liabilities related to the digital video and streaming business of Optibase, in consideration for 2.6 million ordinary shares of Scopus plus an earn-out of up to 0.9 million additional shares based on the achievement of sales goals.
Upon completion of the transaction, Optibase, currently a 36% shareholder of Scopus, will own approximately 46% of Scopus's outstanding ordinary shares, or 49%, if taking into account the full attainment of the additional earn-out shares.
The proposed transaction is subject to the completion of due diligence, negotiation and execution of definitive agreements and the satisfaction of customary closing conditions, including approval of the respective shareholders of Scopus and Optibase.
Yaron Simler, CEO of Scopus, said: "In addition to our current portfolio, Optibase's products extend the breadth of our offering to our customers, opening up new markets for Scopus. Finally, it should enable us to become a more prominent player in the digital video networking market."