Scopus Video Networks, a provider of digital video networking products, has signed a letter of intent to acquire the business of Optibase, which makes streaming solutions for video industry. The all-stock transaction is expected to close in the fourth quarter of 2008.
Optibase, the largest shareholder of Scopus stock (at 36 percent), is based in Herzliya, Israel, and had revenue of approximately $23 million for 2007. Upon completion of the transaction, Optibase will own approximately 46 percent of Scopus’ outstanding shares.
Under terms of the agreement, Scopus will acquire certain assets and liabilities related to the digital video and streaming business of Optibase, in consideration for 2.6 million ordinary shares of Scopus, plus an earn-out of up to 0.9 million additional shares based on the achievement of sales goals.
The proposed transaction is subject to the completion of due diligence, negotiation and execution of definitive agreements and the satisfaction of customary closing conditions, including approval of the respective shareholders of Scopus and Optibase.
Dr. Yaron Simler, CEO of Scopus, said the Optibase’s products extend the breadth of his company’s offering, opening up new markets for Scopus.
For more information, visit www.scopus.net.