Enghouse Systems, one of the market-leading providers of communication solutions, recently announced an impending strategic acquisition. The company, best known for its portfolio of contact centre, telecommunications, and video offerings, will be purchasing the Qumu Corporation.
The Qumu Corporation is a leading provider of cloud-based enterprise video technology. The organisation builds tools to assist companies in creating, controlling, and analysing both live and asynchronous video experiences at scale. The acquisition will result in a merger of the two companies, bringing the existing functionality of the Qumu Corporation into the Enghouse portfolio.
The purchase of Qumu Corporation will enable Enghouse Systems to further expand its already impressive communication tools, with new capabilities. This acquisition could help Enghouse to boost its competitive stance in the evolving video communication landscape.
An Expanding Investment in Enterprise Video
This acquisition marks an exciting opportunity for both organisations. The impending agreement has already been approved by unanimously by the boards of directors for both companies. Following the acquisition, a subsidiary of Enghouse will provide a tender offer for all of the outstanding shares held of the Qumu Corporation brand.
The pricing is currently set at around $0.90 per share in cash, for a full equity value equalling around $18 million. Notably, this purchase price represents a significant premium of around 105% over the closing price for the Qumu common stock recorded in December 2022 ($0.44 per share).
Currently, the merger is expected to be completed by the end of February 2023, ensuring Enghouse Systems will be able to start leveraging the benefits of its acquisition towards the beginning of this year. We’re likely to see some significant updates from Enghouse to follow.
According to Neil Cox, a Chairman on the Qumu Corporation board of directors, the board for the company has long been committed to maximizing shareholder value. They believe the transaction will deliver a fantastic benefit to their shareholders.
Paving the Way for Continued Growth
Enghouse has been growing significantly in the communications landscape in recent years, thanks to a two-pronged strategy focusing on both acquisitions, and internal innovation. Though the purchase agreement is still subject to customary and closing conditions, both Enghouse and Qumu have shared their excitement about the pending deal.
CEO and Chairman for Enghouse Systems, Steve Sadler said the video creation, delivery, and management solutions developed by Qumu promise to be a valuable addition to Enghouse’s ecosystem. The technology will help to further enhance Enghouse’s existing video collaboration and streaming solutions, strengthening the position of both companies in this competitive marketplace.
Qumu’s President and CEO, Rose Bentley said that just as the company has embraced the power of video as the future of work, this merger also gives Qumu the opportunity to embrace new options for innovation. The acquisition will allow Qumu’s team to enhance their product innovation strategy, and deliver a higher quality of support and service to end users.
