Gores Grabs More Video-Conferencing Assets
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Fresh from its January acquisition of Forgent's video-conferencing unit, buyout and turnaround specialist Gores Technology Group (GTG) has set its sights on Video Solutions Business, the video-conferencing equipment division of Wire One Technologies.
GTG said it has sealed a definitive agreement to buy the assets of Video Solutions Business for about $22 million in cash and $1 million to $4 million in stock.
"Wire One's Video Solutions Business will complement our prior acquisition in the video-conferencing equipment space," said Vance Diggins, CEO of GTG. "We are looking forward to significant growth in this business by leveraging our strong balance sheet and future investments in this industry."
Under the deal, GTG will pick up Wire One's video-conferencing equipment distribution, system design and engineering, installation, operation and maintenance activities. The acquisition also comes with Video Solutions' headquarters and warehouse facility in Miamisburg, Ohio, a help desk operation in Camarillo, Calif., a client list of about 3,000 active customers with an installed base of about 22,000 video-conferencing systems, inventory, contracts and work in progress.
GTG said Leo Flotron, Wire One's president and chief operating officer, and the executive in charge of the Video Solutions Business, is expected to continue with the business following the closing of the deal. GTG said it expects the deal to close in the third quarter. Wire One's board has already unanimously approved the deal, though it is still subject to stockholder approval.
Since its founding in 1987, privately-held GTG, based in Los Angeles, has bought and managed more than 40 hardware, software and IT services firms. Recent acquisitions include Aprisma Management Technologies, a maker of software to monitor corporate network performance, and Portera, a developer of government contracting applications.