Affinity’s global professional services customers, which include many of the largest global executive search firms and law firms, will have access to an expanded array of services using Glowpoint’s OpenVideo® cloud platform. Peter Holst, president and CEO of Affinity VideoNet, will join the Glowpoint executive team as Senior Vice President of Business Development. Holst will lead the integration efforts, ensuring that the existing Affinity customer base begins to benefit from expanded services on the OpenVideo® platform and focusing on the seamless delivery of managed services with the combined operation.
Glowpoint entered into a definitive purchase agreement to acquire Affinity for a combination of cash, stock and seller’s note. The purchase price is composed of $7.75 million cash to be paid at closing; a $2.75 million, two-year seller’s note; and the issuance of 2,650,000 shares of common stock, representing slightly less than ten percent of Glowpoint’s diluted shares outstanding. The transaction is scheduled to close in the current quarter subject to completion of the definitive term loan and revolver loan documents, which will fund the cash portion of the acquisition and provide additional working capital.
“We are very excited to bring the Affinity VideoNet team and clients into the Glowpoint family,” stated Joe Laezza, president and CEO of Glowpoint. “Through this acquisition, our combined customer base will have access to a broader suite of cloud services delivered from the OpenVideo® cloud, and broader offering of managed services delivered with the highest quality experience and support for our customers.”
Affinity offers high definition videoconferencing suites and bridging and conferencing services, providing “just like being there” meetings that customers demand . Delivering services with the approach of being more than just a videoconferencing connection, Affinity’s client service team delivers assurance that each meeting will be managed to a level at or above customer expectations. Affinity provides a virtual meeting experience for those with mobility in mind, as well as access to high definition videoconferencing suites – all designed to make meetings productive, simple, and effortless.
“The Glowpoint business model and service platform is a perfect fit for enhancing Affinity’s existing business. As we fully integrate Affinity into Glowpoint’s OpenVideo® service platform, we expect the strong synergies of this deal to provide considerable benefits to our value ,” said Tolga Sakman, Glowpoint’s acting CFO and SVP of Corporate Development.
“Affinity and Glowpoint share common cultures of dedication to our customers and employees. The combined strength of our leadership team will drive the ability to serve and grow our global customers who are clear in their desire to engage large scale, value-adding service partners capable of aggregating multiple services to multiple locations and regions. We are very excited to be entering this phase of our company’s evolution with the Glowpoint team,” said Pete Holst, president and CEO of Affinity.