Front Porch Digital

August 02, 2006 09:00 ET

Front Porch Digital Acquired By Genuity Capital Partners

Premier Archiving Company Charts New Course For Accelerated Investment In Growth Strategies

TORONTO, ONTARIO AND BOULDER, COLORADO--(CCNMatthews - Aug. 2, 2006) - Front Porch Digital, the global market leader in digital broadcast archive management, today announced that the company has been acquired by a fund managed by Genuity Capital Partners for $38 USD million. The purchase price consisted of $33 million in cash at closing and up to an additional $5 million in royalty payments based upon future sales of Front Porch Digital software through the end of 2008. Under the terms of the transaction, all Front Porch Digital patents, intellectual property, product lines, and current employees are included in the sale. Genuity Capital Partners is a Toronto-based private equity group.

As a result of the acquisition, Front Porch Digital will now be able to accelerate its global growth strategy backed by a well-funded investor. Front Porch Digital will operate as an independent, private corporation with headquarters in Boulder, Colo. The existing management team of the company will continue to lead the business, and its new partners at Genuity share a common vision for the future.

"Over the past four years, we have built Front Porch Digital from a start-up into the global leader within the broadcast archive market, and we have done so while sustaining a profitable business," said Front Porch Digital CEO Mike Knaisch. "We are proud of those accomplishments, but our greatest opportunities still lay before us. The inevitable migration to digital broadcast workflows is just beginning. With the support of Genuity, Front Porch Digital will now be able to invest more aggressively in product research and development, customer support, and expansion of our global service platform. These are positive changes that will directly benefit our customers worldwide."

"Genuity's investment strategy is straightforward," said Genuity Managing Partner Christopher Payne. "We invest in profitable growth companies with proven management teams that have leading positions in rapidly expanding global markets. Front Porch Digital ranked very high on all of those criteria. We believe in the team, their products, and their significant competitive advantages. Our plans are completely aligned with those of management. We intend to invest in the business to help Front Porch Digital extend its dominance globally on all fronts."

Genuity's Toronto headquarters is not the only Front Porch Digital connection with Canadian interests. Front Porch Digital estimates that its DIVArchive archive management application has been adopted by 88 percent of Canadian broadcasters now using digital archive technology, and the company has local staff to support those key customers. Chief Technical Officer Brian Campanotti is based in Toronto, and Front Porch has employees based in Montreal and Vancouver, as well.

"I have spent my entire career in the Canadian broadcast market, and I'm especially proud of what Front Porch has been able to accomplish here in the two years since I've joined the company," said Campanotti. "Our commitment to this market is already strong. Now, with Genuity, a Toronto-based investment partner committed to our long-term growth, I look forward to an even stronger presence in the Canadian market and greater support for all of the customers we serve here."

About Front Porch Digital

Front Porch Digital is the global market leader in total digital archive management and transcoding solutions. The company has long been an innovator in delivering unique software, services, and integrated hardware solutions for digital archive management to broadcasters and media companies worldwide. Today, Front Porch Digital's patented archiving technologies are found in more than 140 installations in more than 40 countries, representing 4.5 million hours of content and more than 30 PB of data under management distinguished for superior functionality, scalability, performance, and customer satisfaction. Front Porch Digital's award-winning DIVArchive technology manages the largest broadcast archives in operation for the world's best-known media brands. More information available at the company's Web site at www.fpdigital.com.

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