Digital video solutions developer Optibase Ltd. (Nasdaq: OBAS) is selling its entire video business to French MPEG video compression and decompression solutions, Vitec Multimedia SA for $8 million in cash, plus 45% of Vitec revenue from Optibase's business in excess of $14 million in the year following the closing of the deal.
Optibase expects to close the sale during the second quarter of 2010.
Optibase president and CEO Tom Wyler said, "We have decided to pursue this opportunity as we believe that Vitec is the right company to ensure the continuity of the business in its existing markets as well as maintaining the Optibase brand."
Optibase's share price rose 4% at the opening on Nasdaq today to $1.31, giving a market cap of $22 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2010
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