Canadian IP datacasting firm Novra Technologies has been unveiled as the buyer of struggling satellite broadcast equipment developer Wegener Corporation.
The all-stock deal is still subject to Novra’s due diligence and a shareholder vote from Wegener,…
Canadian IP datacasting firm Novra Technologies has been unveiled as the buyer of struggling satellite broadcast equipment developer Wegener Corporation.
The all-stock deal is still subject to Novra’s due diligence and a shareholder vote from Wegener, which said in September that its board had approved a term sheet from an unnamed buyer.
Financial details remain undisclosed, but Wegener CEO Troy Woodbury said the deal would improve its financial stability while strengthening management operations including sales and marketing, engineering, and production.
“Joining this new organisation represents the end of a difficult financial period for Wegener Corporation and will renew the confidence of our customers, shareholders, employees, and our creditors,” he said.
“We are working on major projects in Latin America and we believe real progress will be made in the domestic digital signage market during fiscal 2014. Strong improvements have been made in channel partners and digital signage product capability. We are encouraged by the opportunities in the future.”
Hit hard by the global economic downturn, the one-time Nasdaq-listed company faced bankruptcy in 2009 after a US$6m sale to a White Knight fell through, forcing it into last minute talks with lending bank BofA Merrill Lynch.
The group specialises in digital video and audio solutions for point-to-multipoint multimedia distribution over satellite.
Novra, which was formed in 2007, specialises in the transmission and reception of IP traffic over satellite, cable and terrestrial communication links. The deal will also see it acquire privately-held satellite equipment firm Westport Research Associates.
Harris Liontas, Novra’s CEO, said: “Wegener Corporation and Westport Research Associates are not just simple acquisitions but a merger allowing for the creation of a solutions-based provider that will offer clients a broader scope of reliable products and services, strong network control systems, creative solutions to network communication issues, deeper access to engineering services and reliable cost effective end-to-end solutions.”
“Representing the first step in Novra Technologies’ strategic vision to combine companies with strong product line, broad install base and operational synergies, these acquisitions are expected to be completed in the first or second quarter of 2014.”
