Leitch Technology is buying Inscriber, a broadcast graphics company, for $18 million.
The acquisition should be complete in early 2005, pending regulatory approvals. Leitch is also assuming $1.5 million in debt in the transaction.
The purchase of Waterloo, Ontario-based Inscriber expands is the second major acquisition for Leitch in 2004, following its acquisition of Videotek. Leitch President Tim Thorsteinson says the Inscriber product line would help expand the company's reach into other areas outside broadcast, such as digital signage.
Inscriber is expected to contribute approximately $14 million (Canadian) in annual revenues, with gross margins of more than 60 percent. The company will continue to operate out of its Waterloo headquarters. Inscriber's founder, Dan Mance, will become the CTO for Leitch and Randy Fowlie, currently the COO of Inscriber, will run the broadcast graphics product line within Leitch.