Glowpoint, a prominent supplier of cloud managed video services worldwide, announced that it has reached an agreement regarding the acquisition of Affinity VideoNet, a leading global provider of public videoconferencing rooms and managed videoconferencing services to professional service organizations.
Affinity's professional services customers will be able to access a vast array of amenities using Glowpoint's OpenVideo® cloud platform. Furthermore, the Glowpoint executive team will be bolstered with the addition of President and CEO of Affinity VideoNet, Peter Holst, as Senior Vice President of Business Development. Holt will be the point man for integration efforts, and responsible for delivering the expanded services of the OpenVideo® platform to the existing Affinity customer base and the smooth distribution of managed services within the combined business operation.
Glowpoint entered into a definitive purchase agreement to acquire Affinity for a combination of cash, stock, and seller's note. The purchase price is composed of $7.75 million cash to be paid at closing; a $2.75 million, two-year seller's note; and the issuance of 2,650,000 shares of common stock, representing slightly less than ten percent of Glowpoint's diluted shares outstanding. The transaction is scheduled to close in the current quarter subject to completion of the definitive term loan and revolver loan documents, which will fund the cash portion of the acquisition and provide additional working capital.
"We are very excited to bring the Affinity VideoNet team and clients into the Glowpoint family," stated Joe Laezza, president and CEO of Glowpoint. "Through this acquisition, our combined customer base will have access to a broader suite of cloud services delivered from the OpenVideo® cloud, and broader offering of managed services delivered with the highest quality experience and support for our customers."
Affinity's high definition videoconferencing suites and bridging and conferencing services meet customer needs by delivering a "just like being there" experience. With an excellent client service team, Affinity gives customers the assurance that each and every meeting will be managed at an exceptionally high level, at or above customer expectations. Affinity provides a virtual meeting experience for those with mobility in mind, as well as access to high definition videoconferencing suites - all designed to make meetings productive, simple, and effortless.
"The Glowpoint business model and service platform is a perfect fit for enhancing Affinity's existing business. As we fully integrate Affinity into Glowpoint's OpenVideo® service platform, we expect the strong synergies of this deal to provide considerable benefits to our value ," said Tolga Sakman, Glowpoint's acting CFO and SVP of Corporate Development."
"Affinity and Glowpoint share common cultures of dedication to our customers and employees. The combined strength of our leadership team will drive the ability to serve and grow our global customers who are clear in their desire to engage large scale, value-adding service partners capable of aggregating multiple services to multiple locations and regions. We are very excited to be entering this phase of our company's evolution with the Glowpoint team," said Pete Holst, president and CEO of Affinity.
As previously announced, Glowpoint will report second quarter results on August 14 and will host a conference call at 4:30PM EDT that day to discuss Q2 operating results and the agreement to acquire Affinity.
For further information, please visit glowpoint.com and affinityvideo.net
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