Sonic Foundry Announces Sale of Mediasite Business to Enghouse Systems

Rhea-AI Summary

Sonic Foundry (SOFO) successfully completes the sale of its Mediasite product and service business to Enghouse Systems Ltd for US$15.5 million in cash. Stockholders voted in favor of the sale, leading to a strategic shift towards new emerging businesses Vidable® and Global Learning Exchange®. CEO Joe Mozden, Jr. expresses confidence in Enghouse's stewardship of the Mediasite brand.

Sale of Mediasite will allow Sonic Foundry to focus on new emerging businesses

MADISON, Wis.--(BUSINESS WIRE)-- Sonic Foundry, Inc. (OTC: SOFO), the trusted leader in developing comprehensive video recording and streaming solutions for corporations, health care organizations and government entities today announced that it has successfully completed the sale of its Mediasite product and service business to Enghouse Systems Ltd. Mediasite will become part of Enghouse’s Interactive Management Group which provides scalable video management solutions to thousands of businesses, educational institutions, and other organizations around the world.

Sonic Foundry stockholders voted in favor of the sale during a special meeting of stockholders which took place on February 6, 2024, and the transaction closed on February 9, 2024. As part of the deal, Sonic Foundry sold the assets of its Mediasite business including its Japanese and Dutch subsidiaries for US$ 15.5 million in cash (subject to certain price adjustments) as described in more detail in the Current Report on Form 8-K (the “Form 8-K”) which Sonic Foundry filed February 9, 2024, with the Securities and Exchange Commission (the “SEC”) regarding the closing of the transaction.”

Sonic Foundry CEO Joe Mozden, Jr. commented, “We are pleased to have completed the sale of our Mediasite business and are confident that Enghouse will provide excellent stewardship for the Mediasite brand in the years ahead. The sale of Mediasite will allow Sonic Foundry to focus on our emerging businesses, Vidable® and Global Learning Exchange®, both of which we believe have potential for growth.”

About Sonic Foundry

Founded in 1991 and headquartered in Madison, Wis., Sonic Foundry (OTC: SOFO) is dedicated to transforming how the world works and learns through innovative and scalable technology solutions. Sonic Foundry’s brands include Vidable® and Global Learning Exchange® which help unlock a smarter, more connected world for learners, workers, and entrepreneurs everywhere. For more information visit www.sonicfoundry.com.

About Enghouse Systems Limited

Enghouse Systems Ltd. is a Canadian publicly traded company (TSX: ENGH) that provides vertically focused enterprise software solutions focusing on contact centers, video communications, healthcare, telecommunications, public safety and the transit market. Enghouse has a two-pronged growth strategy that focuses on internal growth and acquisitions, which are funded through operating cash flows. The company has no external debt financing and is organized around two business segments: the Interactive Management Group and the Asset Management Group. For more information, please visit www.enghouse.com.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements regarding the growth potential for our Vidable and GLX businesses, our future plans for these businesses and other statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms These types of statements address matters that are subject to many risks and uncertainties. Actual results could differ materially from the forward-looking guidance we provide. These risks and uncertainties include but are not limited to: the actual amount of proceeds we may receive from the Mediasite sale due to the adjustment provisions in the definitive agreement; our ability to raise sufficient capital to support the growth of our Vidable and GLX businesses and potential strategic alternatives we may adopt to raise capital and repay outstanding debt to our Chairman of the Board, Mark Burish, and amounts we owe to trade creditors, such as selling assets (including a potential sale of the GLX business to Mr. Burish in exchange for debt relief), restructuring the debt owed to Mr. Burish or obtaining additional equity capital or other capital to refinance our outstanding debt, which capital may be on terms that may be onerous or highly dilutive; and other risks disclosed in our annual report on Form 10-K and our other filings with the SEC, including the Form 8-K. These filings can be accessed on-line at www.sec.gov and other websites or can be obtained from the Company’s investor relations department. All of the information and disclosures we make in this news release, including any forward-looking statements, are as of the date given and we assume no obligation to update or change this information, regardless of subsequent events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240212028966/en/

Sonic Foundry

Sarah Wilde

608.443.2018

Source: Sonic Foundry, Inc.

FAQ

What is the ticker symbol for Sonic Foundry?

The ticker symbol for Sonic Foundry is 'SOFO'.

How much did Sonic Foundry sell its Mediasite business for?

Sonic Foundry sold its Mediasite business for US$15.5 million in cash.

When did the transaction for the sale of Mediasite close?

The transaction for the sale of Mediasite closed on February 9, 2024.

What are the new emerging businesses Sonic Foundry will focus on?

Sonic Foundry will focus on new emerging businesses Vidable® and Global Learning Exchange®.

Who will provide stewardship for the Mediasite brand after the sale?

Enghouse Systems Ltd will provide stewardship for the Mediasite brand after the sale.