CCR Short Takes
News | 02/13/2003 5:00 am EST
Alcatel acquires 100% control of iMagicTV in US$30-million deal
The French company Alcatel plans to acquire all outstanding shares in New Brunswick-based iMagicTV for about US$30 million in a transaction expected to close in the second quarter of calendar year 2003. Alcatel currently owns about 16% of iMagicTV, which provides software enabling telephone companies to deliver multi-channel television and interactive media services over broadband. The deal still needs the approval of iMagicTV shareholders and the regulator. The agreement contains non-solicitation and termination fee provisions. iMagicTV has been on financially shaky ground, reporting a net loss of US$4.6 million in its fiscal third quarter ended Nov. 30, 2002 (CCR Update, Jan. 22/03). The company will provide Telus Communications Inc. with software to test its proposed digital TV service in western Canada, and is working with French television broadcaster TF1 to deliver broadband TV services in a field trial in Paris (CCR Update, Jan. 8/03). It also provides the software for the digital TV services of SaskTel and Manitoba Telecom Services Inc.