Infinova to Acquire March Networks for $88.2 Million

March Networks, a global provider of intelligent IP video solutions, announced that it has entered into a definitive agreement (the "Arrangement Agreement") with Infinova (Canada) and Shenzhen Infinova., a company listed on the Shenzhen Stock Exchange, majority owned by U.S. shareholders and with U.S. headquarters in Monmouth Junction, N.J. Pursuant to the Arrangement Agreement, Infinova will acquire, through a statutory plan of arrangement, all of the issued and outstanding common shares of March Networks Corporation for $4.89 per share in cash (the "Arrangement"). The total value of the transaction is approximately $88.2 million. The Arrangement is subject to approvals by the shareholders of March Networks and Shenzhen Infinova, approvals of applicable regulatory bodies and the Ontario court, and other customary closing conditions.

"The combined companies create one of the 10 largest global players in the video surveillance industry and is well positioned for the expected industry consolidation over the next five years. Infinova offers March Networks a broader geographic footprint, access to the world's fastest growing market and a complementary fit with our respective product lines. This deal is consistent with our strategy to accelerate growth and expand in the Asian market," said Peter Strom, President and CEO, March Networks.

"March Networks has established itself as one of the leading and most innovative players in the video industry and Infinova is proud to combine forces to take the company to the next level. The acquisition provides scale in all critical markets, as well as access to March Network's proven and innovative IP technology. March will continue to operate independently from its Ottawa headquarters, maintain its name and brands, and deliver on all of its commitments to customers, while taking full advantage of Infinova's manufacturing expertise and R&D scale," said Dr. Jeffrey Liu, Chairman of Infinova.