March Networks to buy Cieffe for €20 million

04 Feb 08

IP specialist Cieffe is set to be bought by March Networks for €20 million (approximately £15 million.)

The deal is structured as €14.0 million in cash and €6.0 million in common shares, with an additional earn-out component of up to €10.0 million in cash, taking the possible final price to €30 million.

“This is a strategic acquisition for March Networks that significantly strengthens our presence in the EMEA region as well as in the high-growth commercial industrial segment,” said Peter Strom, President and CEO, March Networks.

“Cieffe’s innovative product portfolio complements March Networks’ existing solutions and enhances our position as a global supplier of comprehensive, open IP video management solutions.”

March Networks expects the deal to close by the end of March this year. It estimates Cieffe’s calendar 2007 revenue at €10 million and pre-tax profit for the 10 months ended October 31, 2007 at approximately €400,000.

Cieffe’s founder and CEO, Fabrizio Colciago, will continue as Managing Director.

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