Wi-LAN announces merger with Tri-Vision
Brief | March 27, 2007
Less than three weeks after Wi-LAN Inc. finished the sale of 5,714,300 common shares of the company on a bought deal basis, the proceeds for which grossed $40 million, the Ottawa-based company has announced the signing of a non-binding letter of intent with Tri-Vision International Ltd. for a business combination. Under the merger, Tri-Vision's common shares would be exchanged for common shares of Wi-LAN based on a price of $1.72 per Tri-Vision common share. This transaction would value Tri-Vision at about $108 million. "The combination of Wi-LAN and Tri-Vision will create a company that is more than the combined parts. It will be a world-class IP licensing company with exciting growth expected from our portfolio of essential patents," said Jim Skippen, the president and CEO of Wi-LAN. Since Tri-Vision owns the rights to US and Canadian V-chip patents, the acquisition will expand Wi-LAN's portfolio beyond the wireless and into the broadcast distribution sector. Skippen estimates the existing licenses of Tri-Vision should yield about $100 million in future revenues.
This content is available to wirereport.ca subscribers
Already a subscriber? Sign in here
Unlock all the Canadian telecom, broadcasting and digital media news you need.
Take a free trial or subscribe to The Wire Report now.
FREE TRIAL
Two weeks of free access to thewirereport.ca and our exclusive newsletters.
SUBSCRIBE
Unlimited access to thewirereport.ca and our exlusive newsletters.