Google Makes $68.2M Offer for Global IP Solutions
Googleis poised to purchase Global IP Solutionsfor $68.2 million, which is based on the currently issued and outstanding share capital of GIPS.
'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,' said Rian Liebenberg, engineering director at Google, in a release. '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.'
As part of the deal Google Acquisition Holdings Inc, a wholly-owned subsidiary of Google will make a public cash offer to acquire all the issued and to be issued shares of GIPS for $2.12 per share.
Global IP Solutions offers high-definition (HD) and super-wideband voice as well as one way video conferencing/chat capabilities for both iPhoneand iPad developers, and recently expanded its service offering to Android developers as well.
'This is an exciting milestone for GIPS as we join Google with a shared vision to transform and accelerate IP communications,' said Emerick Woods, Global IP Solutions CEO in a released statement. 'With Google's global reach, scale and widely recognized 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 offer price represents a premium of 27.5 percent compared to the closing share price on May 14, the last trading day prior to the public announcement of Google's to purchase GIPS. The offer price represents a premium of 54.6 percent compared to the adjusted volume weighted average market price for the last three month period prior to the announcement of the transaction.
The completion of the offer is subject to the acceptance of the offer by the holders of at least 90 percent of the GIPS share capital on a fully diluted basis. The transaction is not currently expected to require approval by competition authorities in any jurisdiction, according to Google and the offer will not be subject to any financing condition and will be funded from Google's existing cash resources.
The board of directors for GIPS has voted to accept the offer and certain shareholders, including Kistefos Venture Capital AS and Kistefos Venture Capital II DA, have irrevocably committed to accept the offer with respect to approximately 50 percent of the outstanding shares and votes of GIPS.
Following the successful completion of the offer GIPS is expected to submit an application to delist the GIPS stock from the Oslo Stock Exchange and to initiate acquisition proceedings with respect to the remaining minority shareholdings in GIPS in accordance with Swedish law.
All GIPS shareholders will receive the terms of the offer in writing on or about May 20 following review and approval by the Oslo Stock Exchange. Google and GIPS have until Aug. 31 to complete the deal.
Naturally, tech experts are weighing in on the deal, including TMC CEO Rich Tehrani.
In a blog entry, Tehrani gets into Google's head and speculates on why the Internet search and ad leader wanted GIPS, including its pursuit of the video over IP space (TV and YouTube on all mobile devices).
'Although I mention this close to last, advertising on video could potentially be the biggest reason for this deal,' Tehrani writes. 'The launch of the iPad and the coming wave of Android-based tablets have likely shown the company how big a market entertainment on these devices will be.'