IMSI to acquire Aladdin Systems for $8M, $2M earn out
Press release from the issuing company
January 21, 2004 - Aladdin Systems Holdings, Inc. "the Company" entered in to a definitive agreement with IMSI, a leading developer and publisher of precision design, graphics and productivity software, to acquire Aladdin Systems Holdings' subsidiary, Aladdin Systems, Inc. "Aladdin." The Company will continue business as usual with its subsidiary Aladdin Enterprise Solutions, Inc. Aladdin will become a wholly-owned subsidiary of IMSI. The transaction is expected to close in March 2004 and is subject to customary closing conditions.
The acquisition by IMSI is for cash, stock and a convertible note with a combined value of approximately $8 million dollars and an earn-out that could result in an additional $2 million in payments during the next three years.
IMSI develops and publishes professional and home user, high-quality software products at affordable prices. IMSI has two divisions: The Precision Design division, anchored by IMSI's flagship product, TurboCAD(r) and The Business Applications division, which provides businesses and end users with software solutions through its popular products like TurboProject(r), HiJaak(r) and TurboTyping.
"IMSI is a leader in the software industry and we expect to accelerate our growth by expanding our product offerings and customer base," stated Jonathan Kahn, CEO of Aladdin. "We look forward to joining forces with IMSI to continue to grow and strengthen our award-winning software products."
"This acquisition significantly strengthens and broadens our product offerings in the expanding utilities market," said Gordon Landies, President of IMSI. "We expect a smooth integration with Aladdin as a result of common sales channels and product development strategies. Aladdin is a leader in the delivery of its products via electronic software download (ESD) technology and we expect to be able to leverage their direct marketing expertise to strengthen and expand our customer base. We are pleased to be joining forces with the Aladdin team and believe that they will help establish IMSI as a leader in the utilities market."
"The acquisition of Aladdin is a key part of our strategy to strengthen our utilities and business application offerings," stated Martin Wade, CEO of IMSI. "This acquisition grows IMSI as a leader in providing a wide range of products and services to our community of users at competitive prices. With our synergistic relationship and Aladdin's demonstrated results and strong management team, we expect the acquisition to significantly enhance revenues and earnings over the coming years."
Aladdin will remain at its headquarters in Watsonville, CA and run as a separate entity under the IMSI umbrella.
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