Gores Technology Group signs Definitive Agreement to Buy Wire One’s Videoconferencing Equipment Division
June 22, 2003
LOS ANGELES, C.A., June 22, 2003 - Gores Technology Group announced that it has entered into a definitive agreement to buy substantially all of the assets of Wire One Technologies videoconferencing equipment division, Video Solution Business. The aggregate transaction is valued at approximately $23 to $25 million, including $22 million in cash.
Pursuant to the terms of the agreement, Gores Technology Group is acquiring substantially all of the assets of Wire One's Video Solutions Business segment, which includes the Company's videoconferencing equipment distribution, system design and engineering, installation, operation and maintenance activities. The Video Solutions segment consists of: a headquarters and warehouse facility in Miamisburg, Ohio, inventory, a help desk operation in Camarillo, California, a client list of approximately 3,000 active customers with an installed base of approximately 22,000 videoconferencing systems, and contracts and work in progress.
"We are proud of the accomplishments of our Video Solutions Business in the videoconferencing equipment space, but we believe it is in the best interest of Wire Ones Technologies shareholders to devote our full energies and resources toward capitalizing on our Glowpoint video service and its unique strengths and first-to-market advantage", stated Richard Reiss, Chairman and Chief Executive of Wire One Technologies.
Vance Diggins, Chief Executive Officer of Gores Technology Group, commented, "Wire One's Video Solutions Business will complement our prior acquisition in the videoconferencing equipment space. We are looking forward to significant growth in this business by leveraging our strong balance sheet and future investments in this industry. Wire One's installed customer base will continue to get the outstanding value and service to which they've become accustomed. We also look forward to an on-going relationship with Wire One as we market Wire One's award-winning Glowpoint service to our video conferencing customers."
Leo Flotron, Wire One's President and Chief Operating Officer and the executive in charge of the Video Solutions Business, is expected to continue with the business following the closing of the transaction.
The transaction has been unanimously approved by Wire One's Board of Directors, which received a fairness opinion for the transaction. The transaction is expected to close in the third quarter of 2003, subject to a vote by Wire One stockholders and other customary closing conditions.
About Wire One Technologies
Wire One Technologies, Inc. (www.wireone.com) operates Glowpoint, the first IP-based subscriber network dedicated to video communications. Launched in late 2000, Glowpoint carries video calls within the United States and to Europe on a network provisioned through carrier-class backbone and last mile access partners over a variety of solutions including DSL, T1, ATM and Optical Ethernet. A recipient of Network World magazine's top rated World Class Award for 'Quality of Service-guaranteed IP videoconferencing service,' Glowpoint presently serves over 250 customers, has over 1,450 endpoints installed or under contract, and carries an average of over 7,000 calls per month. The network service offers guaranteed up-time, real-time billing and usage information, gateway services to legacy ISDN-based sites, multi-point bridging, live operator assistance, encryption, scheduling features and international least-cost routing, among other value-added features.
About Gores Technology Group
With headquarters in Los Angeles, Gores Technology Group is a privately held international acquisition and management firm that pursues an aggressive strategy of acquiring promising high-technology organizations and managing them for growth and profitability. GTG has a successful track record of acquiring and managing companies -- including many divisions acquired from large publicly traded companies -- through its commitment to customers, employees and continued development of intellectual property. GTG has acquired and managed approximately 40 interrelated but autonomous technology-oriented companies with locations throughout the world. Those companies provide a broad range of technology-based products and services to a substantial customer base representing millions of active users worldwide.