Enghouse Acquires Qumu Corporation

Enghouse Systems has successfully acquired Qumu Corporation for US$ 0.90 per share, totaling approximately US$ 18.0 million in equity value.

Rhea-AI Summary

Enghouse Systems has successfully acquired Qumu Corporation for US$ 0.90 per share, totaling approximately US$ 18.0 million in equity value. This acquisition was finalized under an agreement dated December 19, 2022, where a wholly owned subsidiary of Enghouse completed a tender offer for all outstanding Qumu shares. Following this, Qumu merged into Enghouse, now operating as a wholly owned subsidiary. Enghouse aims to integrate Qumu's Video Engagement Platform into its existing portfolio, enhancing its offerings in the enterprise video sector and expanding customer reach.

Positive

• Acquisition enhances Enghouse's enterprise video offerings.
• Qumu's Video Engagement Platform complements Enghouse's existing product suite.
• Strategic merger expected to broaden customer base and market reach.

Negative

• None.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Qumu's Video SaaS Solution For The Enterprise Market 
Expands Enghouse's Video Offering

MARKHAM, ON and MINNEAPOLIS , Feb. 8, 2023 /PRNewswire/ - Enghouse Systems Limited (TSX: ENGH) today announced it has successfully completed its acquisition of Qumu Corporation (NASDAQ: QUMU).  

Under a December 19, 2022 agreement, a wholly owned subsidiary of Enghouse completed a previously announced tender offer for all the outstanding shares of Qumu for US$ 0.90 per share in cash, resulting in a total equity value of approximately US$18.0 million. Subsequently, the Enghouse subsidiary merged with Qumu, resulting in Qumu becoming a wholly owned subsidiary of Enghouse.

Qumu will now join Enghouse's Interactive Management Group, which includes Enghouse Vidyo products. "Qumu's Video Engagement Platform provides video creation, content management and highly scalable delivery solutions which complement our enterprise video suite of products," said Steve Sadler, Chairman and CEO of Enghouse. "Together, we will serve a wider spectrum of customer needs in our niche verticals and compete more effectively in the enterprise video sector. We are very pleased to welcome Qumu's customers, employees and partners to Enghouse."

Rose Bentley, Qumu's President and CEO, said merging Qumu into Enghouse will benefit Qumu's existing customers and enhance Qumu's Video Engagement Platform. "We are pleased to have found a smart, strategic buyer for Qumu that will thoughtfully integrate our business into Enghouse's."

About Enghouse Systems Ltd.
Enghouse Systems Ltd. is a Canadian publicly traded company (TSX:ENGH) that provides vertically focused enterprise software solutions focusing on contact centers, video communications, healthcare, telecommunications, public safety and the transit market. Enghouse has a two-pronged growth strategy that focuses on internal growth and acquisitions, which are funded through operating cash flows. The company has no external debt financing and is organized around two business segments: the Interactive Management Group and the Asset Management Group. For more information, please visit www.enghouse.com.

View original content:https://www.prnewswire.com/news-releases/enghouse-acquires-qumu-corporation-301742540.html

SOURCE Enghouse Systems Limited

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was the acquisition cost of Qumu by Enghouse?

Enghouse acquired Qumu for US$ 0.90 per share, totaling approximately US$ 18.0 million.

When did Enghouse announce the acquisition of Qumu?

The acquisition was announced on February 8, 2023.

How will the acquisition of Qumu impact Enghouse's business?

The acquisition is expected to enhance Enghouse's enterprise video offerings and expand its customer base.

What strategic benefits does Enghouse anticipate from acquiring Qumu?

Enghouse anticipates that integrating Qumu will improve its competitive position in the enterprise video sector.

What is the new relationship between Qumu and Enghouse?

Qumu is now a wholly owned subsidiary of Enghouse and will join its Interactive Management Group.