Montreal, Canada-based digital infrastructure, branding and routing equipment supplier Miranda Technologies is acquiring Grass Valley, Calif.-based routing specialist NVision for $40 million.
Under the proposed all-cash transaction, publicly-traded Miranda will acquire all of the outstanding shares of privately held NVision in a deal financed with a combination of cash on hand and a US dollar credit facility. The acquisition, which is expected to be accretive to Miranda’s earnings during 2009, is slated to close by December 31, 2008, subject to closing conditions. Genuity Capital Markets is acting as financial advisor to Miranda.
For the twelve months ending September 30, 2008, NVision had revenues of approximately US$34 million and gross margins in line with Miranda’s, according to Miranda, which said the deal should generate cross-selling and geographical distribution synergies between the two companies’ existing product lines. NVision has enjoyed several years of growth from sales of its 3-gigabit-capable routers, while Miranda has garnered significant market share with its Densite infrastructure gear and Kaleido-X multi-image display processors.
“The proposed acquisition of NVision will strengthen our overall product offering and competitive stance,” said Strath Goodship, Miranda’s President and Chief Executive Officer, in a statement. “They are a natural fit with our branding, interfacing and multiviewer product lines and will also bring considerable technical expertise. Furthermore, the business combination confirms Miranda’s position as an industry consolidator and is in line with our growth strategy of focusing on accretive acquisitions. We believe that it is a productive use of our cash, which totalled over CDN$86 million as at September 30, 2008 and believe it will benefit our customers, employees and shareholders.”
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