International Datacasting Corporation

International Datacasting Corporation

November 09, 2009 08:39 ET

International Datacasting Corporation Plans to Acquire Logic Innovations Digital Video and Data Broadcast Product Lines

Move will bring expanded product line, experienced team, and new applications

OTTAWA, ONTARIO--(Marketwire - Nov. 9, 2009) - International Datacasting Corporation (TSX:IDC) ("IDC"), a leader in advanced solutions for satellite distribution of broadband multimedia content, announced today that it has entered into a non-binding term sheet to acquire select product lines and related technology from San Diego-based Logic Innovations, LLC ("Logic Innovations").

The Logic Innovations product line of leading-edge broadcasting solutions includes: transport stream multiplexing, IP multicasting and unicasting, as well as broadcast record and playback products for the terrestrial, satellite, and cable broadcast markets. Logic Innovations' particular areas of expertise are digital audio/video and data communications technologies including ATSC, DVB, and MPEG.

"We are excited about this strategic acquisition," said Ron Clifton, President and CEO of IDC. "Logic Innovations has been one of the pioneers in the broadcast industry. They will bring first-class new products to our portfolio of multimedia solutions and an impressive customer list. The people and technology are an excellent fit with our recent acquisition of Tiernan Video. This move will strengthen our San Diego base of operations and allow us to better serve our combined international customer base."

The transaction is to be structured as an asset purchase agreement pursuant to which IDC would acquire the assets of Logic Innovations sufficient to maintain the business as a going concern. The maximum aggregate purchase price (which shall be payable by IDC in cash) for the purchased assets is not to exceed US$750,000.

Although the transaction is not expected to have a material effect on the operations of IDC, the addition of the assets to be purchased from Logic Innovations to IDC's established product fold as well as the hiring of certain of Logic Innovations' employees who are expected to join the IDC team, is expected to be accretive to IDC's product offerings.

The completion of this transaction is subject to standard terms and conditions, including Board and regulatory approvals as well as due diligence. The transaction is expected to close on or before November 30, 2009. A portion of the cash payment for the assets will be subject to certain earn-out provisions. Additional details of the transaction will be disclosed through the appropriate regulatory filings

About International Datacasting Corporation (IDC)

International Datacasting Corporation (TSX:IDC) is a global leader in providing IP-based datacasting solutions for the distribution of broadband multimedia content. IDC has a broad portfolio of advanced technology products marketed under the names SuperFlex, Datacast XD, Tiernan and PROFLine for implementing a wide range of satellite and other broadband content contribution and distribution networks. IDC's products are in demand for radio and television broadcast networks, distance learning, digital signage, digital cinema, IPTV distribution and other content distribution applications. IDC is headquartered in Ottawa, Canada, operates in Europe through its wholly owned subsidiary PROFline B.V. in Arnhem, the Netherlands, and in the US through its Tiernan operations in San Diego, California. The Company is international in scope, with installations in more than 100 countries worldwide, regional sales and service offices in the UK, Australia, Singapore and China and an established international network of value-added partners and distributors.

This press release contains forward-looking statements that may involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with IDC's growth, any difficulties with integrating acquired product lines into IDC's business and/or manufacturing procedures, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities.

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