The two companies have entered into a definitive agreement for the deal. The purchase price includes cash, stock and a convertible note, that itself could yield an additional $2 million in payments over the next three years. The transaction is expected to close in March, the parties said.
Aladdin's products include: StuffIt, Internet Cleanup, Spring Cleaning, and SpamCatcher, the Ten for X utility line and more. The company achieved $7.4 million revenue and operating income of $870,000 in 2002. Its current cashflow will be combined with IMSI for the financial year ending June 30 2004.
IMSI president Gordon Landies said: "We expect a smooth integration with Aladdin as a result of common sales channels and product development strategies. Aladdin is a leader in the delivery of its products via electronic software download technology and we expect to be able to leverage its direct marketing expertise to strengthen and expand our customer base. We are pleased to be joining forces with the Aladdin team and believe that they will help establish IMSI as a leader in the utilities market."
"IMSI is a leader in the software industry and we expect to accelerate our growth by expanding our product offerings and customer base," stated Jonathan Kahn, CEO of Aladdin. "I look forward to joining forces with IMSI to continue to grow and strengthen our award winning software products."