Qumu Corporation, a provider of cloud-based enterprise video technology, and Enghouse Systems Ltd., a provider of enterprise software solutions serving certain enterprise vertical markets, announced a merger agreement.
Under the terms of the agreement, which has been approved unanimously by the board of directors of the companies, a wholly-owned subsidiary of Enghouse will commence a tender offer for all outstanding shares of Qumu for ninety cents per share in cash, for a total equity value of approximately $18.0 million. The purchase price per share represents a premium of approximately 105 percent over the forty-four cents per share closing price of Qumu common stock on Dec. 16.
The merger agreement transaction is expected to be closed in February.
Enghouse Chairman and CEO Steve Sadler said, “The combination of Qumu’s video creation, management and delivery solutions with Enghouse’s video collaboration and streaming products strengthens the position of both companies in a competitive space.”
Qumu’s President and CEO Rose Bentley added, “Just as we embraced video as the future of work, this merger gives Qumu the opportunity to enhance our product innovation and the quality of our service and support.”
Craig-Hallum Capital Group LLC acted as financial advisor to Qumu and Ballard Spahr LLP acted as legal advisor to Qumu.
For more information, visit www.qumu.com or www.enghouse.com