Media 100 Inc., leading supplier of online digital video and effects systems, today announced it has entered into a definitive agreement to acquire Terran Interactive, Inc. of Los Gatos, California, the leading supplier of software tools for high-quality Internet and DVD video.
"The merger of Media 100 and Terran represents a great opportunity for the combined company, its customers and shareholders," said John Molinari, chief executive officer of Media 100. "Terran has grown rapidly since its founding in 1995 by supplying film studios, news organizations, game developers, video post-production houses and corporate website designers with tools for formatting and encoding high-quality video for playback from CDs, DVDs and websites. We see the trend to Internet video and DVD distribution accelerating, and see the combined company positioned to take advantage of this growth."
Dana LoPiccolo-Giles, president of Terran Interactive, said, "Terran products support all major video encoding and streaming architectures, including RealNetworks' RealVideo, Microsoft's Windows Media Technologies, Apple's QuickTime 4 and MPEG. Terran will continue to focus on these technologies and, as part of the combined company, will be able to dedicate more resources to the development of new capabilities in conjunction with its partners. We also plan to leverage Media 100's expertise in real-time video processing to introduce accelerated versions of Terran's products for faster and easier delivery of video on websites and DVD."
Molinari added, "We plan to operate Terran as a wholly-owned subsidiary of Media 100 headquartered in Los Gatos, California. We project results of the acquisition to be accretive within the first year of combined operations, and believe there are efficiencies to be gained in the areas of marketing, distribution and administration."
The transaction is subject to customary closing conditions including the completion of due diligence. The Company will treat the acquisition as a purchase for accounting purposes.
Also, this should offer some great opportunities for both Terran and Media 100. these two companies are an excellent match and the combined companies should be able to seek more opportunities in the growing market they serve.