Haivision Signs Agreement to Acquire AVIWEST

Transaction adds 5G mobile technology and network bonding to Haivision's industry-leading ultra-low latency video streaming and networking solutions

MONTREAL, Feb. 24, 2022 /PRNewswire/ - Haivision Systems Inc. ("Haivision") (TSX: HAI), a leading global provider of mission-critical, real-time video streaming and networking solutions, today announced an agreement to acquire AVIWEST S.A.S. ("Aviwest­­"). With the addition of Aviwest, Haivision will have a comprehensive video contribution solution portfolio to address the growing demand for live, high-quality video content in broadcast, sports, and live event production.

This important acquisition by Haivision will combine two industry leaders in low latency video contribution. Haivision is a premier vendor for low latency "wired" broadcast video networks; Aviwest is a premier vendor for low latency wireless broadcast video networks. The acquisition will bring mobile networking (5G/4G cellular) and patented network bonding capabilities to Haivision's solution portfolio. Combined with Aviwest, Haivision will be an unmatched provider of low latency broadcast technology solutions for any live event.

Founded in 2008, Aviwest is a world-leading provider of mobile IP-based video contribution systems and a pioneer in transmission of live video over cellular networks. The company has a history of innovation including many world firsts: portable cellular video transmission, live video transmission over a 4G network implementing QoS, and live 4K video transmission over a 5G network. Aviwest has also received two Emmy® Awards for its SST networking technology for reliable transmission of video over bonded networks.

Globally, hundreds of top broadcasters, television stations, and production houses trust and rely on Aviwest technology in their day-to-day coverage of sporting and other live events. Furthermore, Aviwest solutions are used extensively in support of major international sporting events. Headquartered in Rennes (Saint-Grégoire), France, Aviwest has more than 70 employees with field operations globally.

"With the addition of Aviwest, Haivision will now lead in both fixed and mobile networks in providing ultra-low latency video solutions," said Mirko Wicha, Haivision President and CEO. "We are very excited to welcome the amazing team at Aviwest and its customers to the Haivision family, and to provide broadcasters globally a trusted and proven vendor to solve their video contribution challenges."

"Together with Haivision, our solutions will bring customers maximum live video flexibility with ultra-low latency, highly reliable network connectivity, and pristine video quality," said Ronan Poullaouec, CTO and Co-Founder of Aviwest. "With sub-200ms glass-to-glass latency over 5G networks, our solutions are revolutionizing remote production workflows by giving broadcasters more options for contributing real-time content for premium live events and sports coverage."   

On March 16 at 9 am EST, Haivision will host a virtual CTO discussion, Haivision & Aviwest: The Future of Broadcast Video Contribution, sharing the strategy and vision of the acquisition. Featuring Mahmoud Al-Daccak, CTO of Haivision, and Ronan Poullaouec, CTO of Aviwest, attendees will learn how this important acquisition is poised to change the face of broadcast contribution. Register to attend the webinar here:

https://www.haivision.com/resources/webinars/cto-discussion/

Key Transaction Highlights:

Haivision is acquiring Aviwest to expand its technology and solution portfolio with 5G transmission, mobile video contribution, and network bonding technology. This acquisition will allow Haivision to:

• Deliver a comprehensive solution portfolio for low latency video contribution over fixed and mobile networks.
• Provide low latency synchronized stream delivery to address the needs of remote production and cloud production workflows.
• Benefit from all cross-selling opportunities between the companies' highly complementary offerings.
• Incorporate Aviwest's patented network bonding technology across Haivision's products and leverage both EmmyÒ award-winning network transport protocols, SRT and SST.
• Extend Aviwest 5G and network bonding technology into the growing government and public safety markets.
• Significantly expand Aviwest's sales presence into the North American market.
• Derive long term product development efficiencies in video encoding, cloud connectivity, and network management.
• Gain operational synergies in supply chain management, production, global 24/7 support, sales, and marketing.
• Establish Haivision's second largest development facility worldwide in France, making Europe home to over half of Haivision's development team.
• Expand its global workforce to over 400 employees.

Transaction Details:

Haivision will acquire 100% of the shares of Aviwest on a cash-free and debt-free basis for cash consideration of €20.5 million (approximately C$29.6 million), subject to customary adjustments. Aviwest had approximate revenues of €10.5 million (approximately C$15.1million) in 2021. The closing is contingent upon the satisfaction or waiver of all closing conditions, and the receipt of certain approvals, including obtaining the advisory opinion of Aviwest's Works Council (employee representatives) as mandated by French Law - all of which are expected to be received within 30 days. The acquisition is expected to be accretive by the end of Haivision's second quarter.

About Haivision

Haivision is a leading global provider of mission-critical, real-time video streaming and networking solutions. Our connected cloud and intelligent edge technologies enable organizations globally to engage audiences, enhance collaboration, and support decision making. We provide high quality, low latency, secure, and reliable live video at a global scale. Haivision open sourced its award-winning SRT low latency video streaming protocol and founded the SRT Alliance to support its adoption. Awarded two Emmys® for Technology and Engineering from the National Academy of Television Arts and Sciences, Haivision continues to fuel the future of IP video transformation. Founded in 2004, Haivision is headquartered in Montreal and Chicago with offices, sales, and support located throughout the Americas, Europe, and Asia. Learn more at haivision.com.

About Aviwest

Aviwest is a leading global provider of IP-based mobile video contribution systems. Powered by proprietary, patented, and two-time Emmy® Award-winning intelligent IP bonding technology, its reliable solutions have been adopted by 1,000-plus broadcasters, online media, news agencies, social media companies, and first responders in more than 100 countries to cover breaking news and live events. Headquartered in Saint-Grégoire, France, Aviwest offers professional worldwide support for its products and cloud services through local and international sales offices and distribution networks across more than 160 countries. Learn more at aviwest.com.

Forward-Looking Statements

This release includes "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including, without limitation, statements regarding the timing and outcome of the acquisition transaction with Aviwest and the anticipated benefits of the transaction. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.

Forward-looking statements are necessarily based on opinions, assumptions and estimates that, while considered reasonable by Haivision as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under "Risk Factors" in Haivision's latest annual information form, and in other periodic filings that Haivision has made and may make in the future with the securities commissions or similar regulatory authorities in Canada, all of which are available under Haivision's SEDAR profile at www.sedar.com. There can be no assurance that the transaction will occur, or that it will occur on the terms and conditions contemplated in this news release. The transaction could be modified or terminated.

These factors are not intended to represent a complete list of the factors that could affect Haivision. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Haivision undertakes no obligation to publicly update any forward-looking statement, except as required by applicable securities laws.

SOURCE Haivision Systems Inc.