MONTREAL – Haivision Systems Inc. (“Haivision”) (TSX: HAI), a leading global provider of mission-critical, real-time video streaming and networking solutions, announced a definitive agreement to acquire CineMassive Displays, LLC (“CineMassive”). With the addition of the CineMassive technology, Haivision will combine low latency live video with real-time secure data sources and communication elements to provide customers with a single-vendor solution for situational awareness.
CineMassive, based in Atlanta, has 62 employees and had approximate revenues of US$20 million (approximately C$25 million) in 2020. It develops mission-critical visual collaboration technology including CineNet, a solution that aggregates content from multiple real-time sources for display and interaction within control room operations centers. It also enables secure sharing for situational response across multi-site organizations and with remote collaborators. CineMassive has an exceptional installed base including Akamai, McKesson, Cox Communications, CBS, Stanford University, many US police/emergency response centers, and tactical operations centers across every branch of the US Armed Forces.
“Cybersecurity, network, and physical threats are today’s reality that governments and large enterprises are now addressing with global multi-disciplinary teams,” said Mirko Wicha, Haivision President and CEO. “With the combination of Haivision and CineMassive technologies, customers can create a secure, global common operating picture from a single vendor leveraging both cloud connectivity and intelligent edge capabilities.”
Bringing together real-time secure video networking and data visualization creates a unique offering in the market to assist with the challenge of immediate and coordinated response to complex situations. Haivision will offer end-to-end solutions tailored for mission-critical collaboration in Global Security Operations Centers, joint and tactical operations centers, public safety operations centers, and control rooms.
“We have worked with Haivision for over ten years and our companies share many common themes,” said David Minnix, Co-founder and CEO of CineMassive. “Our approach to real-time performance, security, and IT compliance in solving mission-critical challenges of the highest order is echoed by Haivision and reflected in the longstanding relationships that we both have with our customers.”
“Haivision and CineMassive are very complementary in the government and defense markets,’’ said Brian Henry, Haivision’s Senior Vice President of Global Sales. “Fortune 500 enterprises, public safety, and emergency response teams are looking towards proven defense-style approaches to situational response, and towards companies like Haivision and CineMassive which are built upon years of engagement, reputation, and trust in the most challenging markets.”
Key Transaction Highlights:
Haivision is acquiring CineMassive to bring together real-time video network technology and mission-critical visual collaboration solutions to better serve and expand its customer base. This acquisition will allow Haivision to:
- Increase our respective footprints within defense, government, and enterprise customers. Haivision and CineMassive already share accounts in these segments with integrated solutions.
- Expand into new markets by extending CineMassive’s footprint globally and increasing Haivision’s reach to state, local, and public security.
- Differentiate ourselves through strengths in IT compliance, security, industry standards, and government certifications.
- Extend our leadership in secure live video networks by including real-time data visualization in support of mission-critical decision making.
The CineMassive Atlanta operations will become the Company’s showcase visualization collaboration center with all employees and management remaining post transaction.
Transaction Details:
The definitive purchase agreement provides that Haivision will indirectly acquire, through a wholly-owned subsidiary, 100% of the membership interests of CineMassive on a cash-free and debt-free basis for a total purchase price of US$30 million, subject to customary adjustments, of which US$15 million is payable by the issuance of 2,145,326 common shares of Haivision and US$15 million is payable in cash. The cash component of the transaction will be financed with Haivision’s cash on hand. The shares issued under the transaction will be subject to a four month hold period from the closing date under applicable Canadian securities laws. The closing is contingent upon the receipt of certain approvals, including that of the Toronto Stock Exchange, and satisfaction or waiver of all closing conditions, which are expected to be received within 30 days. The acquisition is expected to be immediately accretive.
