The board of satellite content distributor International Datacasting Corporation has launched a formal process to explore strategic alternatives. A corporate sale or merger are two of the options being assessed by the Canadian company’s board, which decided to take drastic action in light of Q4 2016 results being significantly below expectations.
The board of satellite content distributor International Datacasting Corporation (TSX-V:IDC) has launched a formal process to explore strategic alternatives.
A corporate sale or merger are two of the options being assessed by the Canadian company’s board, which decided to take drastic action in light of Q4 2016 results being significantly below expectations.
IDC’s management did not close any laser MPS deals in Q4 despite expecting to seal a number of medium and large potential transactions, with the company citing delays caused by prospective customers.
“The strategy committee of the board, which is comprised entirely of independent directors, will consider the relative merits of the strategic alternatives and provide advice and make recommendations to the board regarding any potential transaction,” IDC said.
In connection with the decision IDC’s two co-CEOs and CFO have all resigned from their posts, with former CFO Steve Archambault becoming CEO until 29 April.
IDC’s board accepted the resignations of Chris Barrett and Steeve Huin and Steve Archambault, who departed on 22 February. Both executives will provide advisory consulting services through until the end of April.
IDC chairman Chris Van Staveren (pictured) said: “This management team has worked tirelessly and made personal sacrifices to try to make IDC successful; however, the commercial realities indicate that greater success can be achieved by joining forces with a larger company in the broadcast space.”
Van Staveren said the resignations would give IDC the greatest chance of finding the right partner going forward.
Founded in 1984, IDC provides point-to-multipoint distribution of broadband multimedia content over satellite.
In December 2015 it shifted its stock from the Toronto Stock Exchange to begin trading on the TSX Venture Exchange instead.
