Espial enters definitive agreement to acquire Kasenna

July 1, 2008 - Middleware provider Espial has entered a definitive agreement to acquire US firm Kasenna, a provider of VOD software and solutions, in exchange for 4.7mn Espial common shares, representing approximately 33.6% of the company's issued and outstanding shares after completion of the transaction.

The acquisition is expected to be concluded on or about July 9 of this year, subject to regulatory approvals and the satisfaction of other conditions of closing. The combined operations are described as providing "strong synergies", with an increased number of Tier 1 video service provider customers, a footprint of over 100 customers worldwide and a combined 2.4mn+ IPTV licenses in deployment for their products. The combined company is also anticipated to have a broader product portfolio including browsers, video servers, client & server middleware and applications, as well as a larger sales force across EMEA, Asia and the Americas.

Jaison Dolvane, CEO of Espial, commented: "Video services are critical for service providers' success worldwide. The combination of Espial and Kasenna strengthens the leadership position of Espial in the IPTV, hybrid IP-DVB and hospitality segments. The IPTV market remains early and fragmented, and service providers are looking for clear leaders that they can bet on. Acquiring Kasenna provides us with increased scale, expertise, product breadth and channel access to position ourselves as the leading choice for service providers worldwide".

Upon closing of the transaction, no Kasenna shareholder will hold more than 10% of Espial's common shares, meaning that the transaction will not affect control of Espial. With regards to the combined company's future roadmap, Mr. Dolvane stated: "Espial will work to support and enhance its relationships with all Kasenna and Espial customers, partners and channels. We will deliver integrated solutions with a predictable roadmap, along with continuing to sell component products for open and homegrown IPTV & hybrid IP-DVB video systems. Partnering with ecosystem partners, including 3rd party middleware and VOD companies will continue to be an important part of our strategy".