Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, May 26, 2023

Article Excerpt

ENGHOUSE SYSTEMS LTD., $38.42, symbol ENGH on Toronto, is a software and services provider. The company operates through two business groups: Interaction Management (54% of total revenue) sells software for managing customer interactions; and Asset Management (46% of revenue) offers technology solutions for network operators and software solutions for transit and transportation operators. On May 17, 2023, Enghouse announced it had entered into an asset purchase agreement with Lifesize Inc., a provider of video conferencing and contact center solutions. Lifestyle’s brands include Lifesize, Kaptivo, ProScheduler, Serenova and Telstrat. Lifesize is currently in Chapter 11 bankruptcy proceedings in Texas. The company will operate as usual throughout the financial reorganization process. To remain in operation, it has obtained $5 million U.S. in financing from an existing lender. Lifesize’s business focused on in-office video conferencing. However, the pandemic ended that, so it pivoted to providing 4K video conferencing solutions for contact centres. No terms were provided for the asset and brand purchase agreement—and the Chapter 11 proceedings will…