Autonomy Snaps Up Virage for $24.8M7/10/2003 6:24 AM Eastern
British enterprise-software provider Autonomy Corp. plc will acquire
video-archiving provider Virage Inc. in a stock deal worth approximately $24.8
Under a definitive agreement approved by both companies’ boards of directors,
Autonomy will pay $1.10 per share in cash for Virage, which provides
video-archiving services for cable networks including Cable News Network,
Bloomberg Television, Discovery Networks U.S., E! Networks, Fox Sports and the
British Broadcasting Corp., among others.
The transaction is based on a fully diluted $24.8 million cash purchase price
and a net cash purchase price of $13.3 million, the latter based on Virage’s
expected cash balance as of Sept. 30.
The acquisition will extend the reach for Autonomy’s automated
information-management products, as well as Virage’s own video technology,
according to company officials.
"We’re excited about this transaction, as we believe it represents good value
for our shareholders. At the same time, the transaction with Autonomy will
enable Virage to provide enhanced products, as well as maintaining the support
for the investment our customers have made," Virage chairman and CEO Paul Lego
said in a release.
Stockholders representing approximately 40% of Virage’s outstanding shares
have also signed off on the deal. The transaction is expected to close late in
the third quarter.