US internet giant Google said that it has entered into an agreement to acquire San Francisco-based Norwegian firm Global IP Solutions (GPIS), in a transaction valued at approximately NOK421m in cash, in a move to expand its internet video and audio offerings.
Global IP Solutions provides voice and video processing in IP communications. It serves application developers, service providers and network equipment vendors and its customer list includes Nortel, Oracle, Samsung, WebEx, Yahoo!, AOL and other key players in the VoIP market.
Rian Liebenberg, engineering director at Google, said: “The web is evolving quickly as a development platform, and real-time video and audio communication over the internet are becoming important new tools for users.
“GIPS’s technology provides high quality, real-time audio and video over an IP network, and we’re looking forward to working with the GIPS team at Google to continue innovating for the web platform.”
Under the agreement, Google Acquisition Holdings, a wholly owned subsidiary of Google, will make a recommended voluntary public cash offer to acquire all the issued and to be issued shares of GIPS for NOK13 ($2.12) in cash per share.
The offer price represents 142.1% over the closing share price of GIPS on January 11 and 27.5% over the closing share price on May 14, 2010.
Google said that certain GIPS shareholders, including Kistefos Venture Capital and Kistefos Venture Capital II, have irrevocably committed to accept the offer with respect to approximately 50% of the outstanding shares and votes of GIPS.
Emerick Woods, CEO of Global IP Solutions, said: “This is an exciting milestone for GIPS as we join Google with a shared vision to transform and accelerate IP communications. With Google’s global reach, scale and widely recognised leadership, we are confident that our existing customers will continue to be fully supported while we continue to enhance and extend our products and technology at Google.”
The completion of the offer will be subject to the satisfaction or waiver by the offer or of customary conditions, including acceptance of the offer by the holders of at least 90% of the GIPS share capital on a fully diluted basis.
