Publicly-listed cloud-based video services provider Glowpoint this morning announced that it has agreed to buy Affinity VideoNet, which delivers videoconferencing services to organizations worldwide, in a cash+stock deal.
Glowpoint argues that the acquisition will position it as the largest pure-play cloud based managed video service provider to global enterprises.
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Peter Holst, president and CEO of Affinity VideoNet, will join the Glowpoint executive team as Senior Vice President of Business Development.
Under the terms of the agreement, Glowpoint will pay $7.75 million in cash at closing – which is expected to occur this quarter – in addition to a $2.75 million (two-year) seller’s note.
The company will also issue 2,650,000 shares of common stock, which represents just south of 10 percent of Glowpoint’s diluted shares outstanding.
Following the closing of the transaction, Glowpoint says it forecasts annual revenue for 2013 in the range of $40 million.