Glowpoint Acquires Affinity VideoNet
Glowpoint (News - Alert) Inc., (NYSE MKT: GLOW), a major global provider of cloud and managed video communication services, has completed its acquisition of Affinity VideoNet, a source of global videoconferencing services.
Headquartered in Murray Hill, New Jersey, the sole mission of Glowpoint, Inc. is to make video meetings simple and reliable so people can come together for business meetings. With its extensive suite of cloud and managed services, Glowpoint has successfully made video meetings and audio conferencing a perfect replacement for meetings in person.
Glowpoint, Inc. has a an impressive and diverse client roster, which includes Fortune 100 companies, governments, healthcare providers, educational institutions, business service providers and not-for-profit organizations.
Affinity VideoNet was founded sometime during 1991 and is based in Wakefield, Massachusetts. It has been providing video conferencing suites, desktop solutions and managed services. Affinity provides the tools and expertise to meet all video conferencing objectives, be it a Fortune 500 company or a small business run by 10 people.
Whether the conference requires standard definition, high-definition, ISDN, IP or a mix, Affinity has managed to always provide a quality conferencing experience.
Rahul Arora, a TMCNet Contributor, reported in August 2012 when Glowpoint, Inc. had signed a definitive agreement to acquire Affinity VideoNet. The expected purchase price of Affinity includes $7.75 million in 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.
According to the terms of the agreement, Peter Holst, president and CEO at Affinity VideoNet, will join the Glowpoint executive team as senior vice president of Business Development.
Joe Laezza, company president and chief executive officer, said Glowpoint welcomes Affinity's employees and customers, which include many of the world's largest global executive search firms and law firms. The merger further solidifies Glowpoint's dominant position in the cloud-based managed video communication services market, delivered through their OpenVideo platform and their newly acquired installed base of public videoconferencing rooms.
Glowpoint’s senior vice-president of business development, Peter Holst, will lead the integration process. Peter previously held the position of Affinity’s president and chief executive officer. Glowpoint is expecting revenue of $40 million and 20 percent non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margins in 2013.
Tolga Sakman, Glowpoint's acting chief financial officer and senior vice-president of Corporate Development, said the Glowpoint business model and service platform is a perfect fit for enhancing Affinity's existing business.
Sakman added that as they fully integrate Affinity into Glowpoint's OpenVideo service platform, they expect the strong synergies of this deal to provide considerable benefits to their value.
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Edited by Braden Becker