Multimedia
Blogs
Forum
Affordable HD
Whitepapers
Newsletters
Events
Advertisers
Blogcast
MillimeterCiprico Announces Acquisition of Huge Systems, Inc.
Feb 1, 2005 6:00 PM
MINNEAPOLIS--Ciprico Inc. (Nasdaq: CPCI), announced that it has completed the acquisition of Huge Systems Inc. ("Huge"). Huge is a privately held company based in Aguora Hills, California, and a leading supplier of entry-level data storage solutions for desktop video production professionals. For 2004 Huge had sales of approximately $5 million and earnings before taxes of approximately $300,000. The purchase price was $1,325,000 cash and $300,000 of seller notes in addition to contingent consideration based on the performance of the business over the next twelve months.
The acquisition of Huge will enable Ciprico to broaden its range of storage solutions, add new channel outlets and expand technical capabilities. The principals of Huge will join Ciprico in similar capacities. All sales, engineering and technical support functions for Huge will remain in California. Ciprico will continue to invest in the entry-level RAID technology developed by Huge in addition to its performance-based RAID and DiMeda Network Attached Storage solutions.
"In just three years, Huge has established itself as the technology leader in entry-level RAID solutions for video production applications, said James Hansen, President and CEO of Ciprico. Our traditional customers have been asking us to expand our product portfolio with more entry-level solutions. The addition of the Huge product line offers a full range of value points to our traditional OEM customers and our new distribution partners.
In addition, adding Huge's established reseller network provides us a broader range of delivery vehicles for our products, particularly our growing DiMeda family, and offers customers more choices for purchasing our products. We believe there are cross-selling opportunities within the respective customer bases and new prospects in emerging markets such as security and back-up."
"We're excited about the synergy this transaction offers," said Mike Anderson, founder and Chief Technology Officer of Huge. Ciprico has significant brand value in the high-end broadcast and military markets, earned by delivering outstanding products with superior customer service. We look forward to joining the Ciprico team as we continue to offer value-based, performance oriented products."
Continue the discussion on “Crosstalk” the Millimeter Forum.