Front Porch Digital acquired10 August 2006
Digital broadcast archive management specialist, Front Porch Digital, has been acquired by a fund managed by Genuity Capital Partners, a Toronto-based private equity group, for $38 million.
The purchase price consisted of $33 million in cash at closing and up to an additional $5 million in royalty payments based upon future sales of Front Porch Digital software through to the end of 2008. Under the terms of the transaction, all Front Porch Digital patents, intellectual property, product lines, and current employees are included in the sale.
As a result of the acquisition, Front Porch Digital now hopes to be able to accelerate its global growth strategy backed by a well-funded investor. Front Porch Digital will operate as an independent, private corporation with headquarters in Boulder, Colorado. The existing management team of the company will continue to lead the business.
“Over the past four years, we have built Front Porch Digital from a start-up into the global leader within the broadcast archive market, and we have done so while sustaining a profitable business,” said Front Porch Digital CEO, Mike Knaisch. “We are proud of those accomplishments, but our greatest opportunities still lay before us. The inevitable migration to digital broadcast workflows is just beginning. With the support of Genuity, Front Porch Digital will now be able to invest more aggressively in product research and development, customer support, and expansion of our global service platform. These are positive changes that will directly benefit our customers worldwide.”
“Through the efforts of a dedicated team, motivated partners, and loyal customers, DIVArchive is established as the proven choice of the world’s leading broadcasters,” said Rino Petricola, senior vice president of Front Porch Digital International. “With Genuity behind us, a strong team has become even stronger. Our goal now is to enrich our product offering, strengthen our service capabilities, and strive to invest in those areas that benefit our customers most.”
Genuity’s take is as follows. “Genuity’s investment strategy is straightforward,” said Managing Partner, Christopher Payne. “We invest in profitable growth companies with proven management teams that have leading positions in rapidly expanding global markets. Front Porch Digital ranked very high on all of those criteria. We believe in the team, their products, and their significant competitive advantages. Our plans are completely aligned with those of management. We intend to invest in the business to help Front Porch Digital extend its dominance globally on all fronts.”