08.04.2006 12:00 AM
Genuity Capital Partners Acquires Front Porch Digital
Genuity Capital Parnters, a Toronto-based private equity group acquired Front Porch Digital
this week for $38 million.
Front Porch Digital, a developer of digital broadcast archive management, will operate as an independent, private corporation with headquarters in Boulder, Colo. The existing management team will continue to lead the business.
"Genuity's investment strategy is straightforward," said Managing Partner Christopher Payne. "We intend to invest in the business to help Front Porch Digital extend its dominance globally on all fronts."
The purchase price included $33 million in cash at closing and up to an additional $5 million in royalty payments based on future sales of Front Porch Digital software through the end of 2008. Under the terms of the deal, all Front Porch Digital patents, intellectual property, product lines, and current employees are included in the sale.
"Over the past 4 years, we have built Front Porch Digital from a start-up into the global leader within the broadcast archive market, and we have done so while sustaining a profitable business," said Front Porch Digital CEO Mike Knaisch. "With the support of Genuity, Front Porch Digital will now be able to invest more aggressively in product research and development, customer support, and expansion of our global service platform."
Currently, Front Porch Digital's patented archiving technologies are found in more than 140 installations in more than 40 countries. Clients include BBC Broadcast, Discovery Communications, PBS, and MTV Networks Europe.