BakBone Software Announces Acquisition of ColdSpark
May 14 2009 - 6:30AM
Business Wire
BakBone Software Incorporated (Pink Sheets: BKBO), a global
provider of heterogeneous integrated data protection solutions,
today announced that it has completed the acquisition of ColdSpark,
a leading provider of enterprise email infrastructure solutions and
platforms. Under the terms of the agreement, BakBone will pay
$15.938 million for the Company, consisting of $8.125 million in
cash and 18,169,780 common shares with a deemed value of $7.813
million, with payments extending over three years. In connection
with the closing, BakBone will pay cash of $750,000 and issue
9,117,877 common shares which will be subject to certain selling
restrictions.
�This acquisition provides BakBone with a strong entr�e into the
rapidly-growing enterprise message management market,� said Jim
Johnson, president and chief executive officer, BakBone. �ColdSpark
is a leader in managing global messaging infrastructures, with an
established presence with some of the world�s largest companies in
industries including financial services, manufacturing and media
and a growing identified pipeline opportunity of more than $7.0
million. BakBone�s data protection platform, combined with
ColdSpark�s SparkEngine� Open Mail Transport Platform, will allow
customers to improve corporate compliance, mitigate risk, improve
performance and reduce operational costs. The combination further
advances our Integrated Data Protection strategy through the
expansion of our product portfolio, as well as access to a large
and growing new market.�
ColdSpark, based in Broomfield, Colo., is a leading provider of
enterprise email infrastructure solutions and platforms. The
Company�s flagship SparkEngine Mail Transport Platform enables
customers to enhance the power of their email to drive revenue,
build customer relationships and improve business efficiency, while
ensuring security, compliance and performance. Customers include
many of the world�s largest financial services companies such as
Merrill Lynch, as well as companies in the entertainment and
hospitality industries like Fairmont Hotels and Starz Encore, among
others.
�We are very excited to be joining the BakBone team,� said Scott
Brown, co-founder and chief technology officer, ColdSpark. �We
share a common vision about the increasing importance of email
security compliance, an area which continues to grow. With this
transaction, ColdSpark will have the resources necessary to realize
the full potential of our technology and bring a broader set of
products to a larger customer base much faster.�
An industry visionary, Brown will join BakBone Software as the
General Manager of BakBone�s new Message Management Division. The
new Division will focus on expanding the Company�s capacity to
allow enterprise customers to more effectively manage and control
messaging to improve overall customer care and compliance.
BakBone Software retained Craig-Hallum Capital Group LLC as its
financial advisor and Morrison & Foerster LLP as its legal
advisor.
About BakBone Software
BakBone is committed to making data protection a simple,
straightforward process while delivering its Integrated Data
Protection (IDP) strategy through an award-winning product suite.
This suite provides unprecedented capabilities not only to protect
critical data � but more importantly, to ensure the availability of
that data as well.�BakBone�s products offer a single point of
control for managing resources across all platforms, providing
improved operational efficiency, reduced system downtime, improved
availability and enhanced security to support the business growth
of enterprise environments. Thousands of users worldwide leverage
BakBone�s IDP approach to simplify the management of multi-platform
environments with a portfolio of backup, disaster recovery,
replication and storage reporting solutions for Linux, Windows,
Unix and Mac OS environments. These scalable data protection
solutions address the demands of Global 5000 organizations and are
distributed through a worldwide network of select OEM partners,
strategic partners, resellers and solution providers. BakBone is
headquartered in San Diego, Calif. For more information about
BakBone, visit www.bakbone.com or email info@bakbone.com.
Safe Harbor
This press release contains forward-looking statements that
involve risks, uncertainties, assumptions and other factors, which,
if they do not materialize or prove correct, could cause BakBone's
results to differ materially from historical results, or those
expressed or implied by such forward-looking statements. The
potential risks and uncertainties may include, but are not limited
to: risks that the anticipated benefits of the acquisition will not
be achieved; risks that the identified pipeline will not result in
anticipated revenues; risks that the integration will take longer,
cost more or result in more management distraction than
anticipated; risks that future resale of the shares issued in the
acquisition will have an adverse impact on the trading price of the
BakBone common shares; the deteriorating economic and market
conditions that could lead to reduced spending on information
technology products; competition in our target markets; potential
capital needs; management of future growth and expansion; the
development, implementation and execution of the Company�s
Integrated Data Protection (IDP) strategic vision; risk of
third-party claims of infringement; protection of proprietary
information; customer acceptance of the Company's existing and
newly introduced products and fee structures; and the success of
BakBone's brand development efforts; risks associated with
strategic alliances; reliance on distribution channels; product
concentration; need to develop new and enhanced products; potential
product defects; our ability to hire and retain qualified employees
and key management personnel; and risks associated with changes in
domestic and international market conditions and the entry into and
development of international markets for the Company's products.
Our forward-looking statements should be considered in the context
of these and other risk factors disclosed in our most recent report
filed with the Securities and Exchange Commission, which may be
found at www.sec.gov, as well as those risk factors disclosed in
our current report filed with the relevant Canadian securities
regulators, which is available on SEDAR at www.sedar.com. All
future written and oral forward-looking statements made by us or on
our behalf are also subject to these factors. BakBone assumes no
obligation to update any forward-looking statement to reflect
events or circumstances arising after the date on which it was
made, other than as required under applicable securities laws.
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