Radvision (Nasdaq: RVSN; TASE: RVSN), which develops VoIP-based video and voice solutions, has announced the acquisition of First Virtual Communications, Inc. (Pink Sheets: FVCCQ.PK), which is Chapter 11 bankruptcy.
Radvision will buy substantially all the operating assets, intellectual property and customer contracts of FVC and its wholly-owned subsidiary CUseeMe Networks, Inc. for approximately $7.15 million in cash. The transaction has been approved by the boards of both companies as well as by the Official Committee of Unsecured Creditors of FVC. It is subject to the approval of the Bankruptcy Court at a hearing scheduled for March 11. The transaction is expected to close on March 15.
"We believe that the visual communications market is poised for significant growth as it expands out of the meeting room and onto the employee desktop and into the home," said Radvision CEO Gadi Tamari. "Radvision has taken a market leading role in making this vision a reality and this acquisition supports our efforts in providing new technology and customer solutions. FVC has been a pioneer in the software desktop space - delivering an award-winning software-based solution to enterprises and government/military users around the world - and we are confident that the combination of the two companies' technologies and expertise will move the visual communications market forward."
The assets of First Virtual Communication and its wholly-owned subsidiary CUseeMe Networks, Inc. include contracts and technologies related to providing integrated real-time voice, video, and Web collaboration/communication solutions to enterprises, service providers, and portals. FVC's flagship product, Click to Meet, provides a distributed software-based rich media communications platform and downloadable Web browser-based communications software client that transparently passes through firewalls.
Radvision had $64 million revenue in 2004, 25% more than in 2003, and made a net profit of $7 million, double its profit in 2003. At the end of 2004 it had $110 million cash.
Published by Globes [online], Israel business news - www.globes.co.il - on March 2, 2005