Front Porch Digital, a supplier of archive management solutions, has been acquired by Genuity Capital Partners, a private equity group, for $38 million. The purchase price includes $33 million in cash and up to an additional $5 million in royalty payments based on future sales of Front Porch Digital software through the end of 2008.
Under terms of the transaction, all Front Porch Digital patents, intellectual property, product lines and current employees are included in the sale. Genuity Capital Partners is based in Toronto.
As a result of the acquisition, Front Porch Digital will operate as an independent, private corporation with headquarters in Boulder, CO. The existing management team will continue to lead the business.
Christopher Payne, Genuity managing partner, said that the investment was based on a prediction that Front Porch Digital would continue to be profitable, with a proven management team, innovative products (such as Front Porch Digital's DIVArchive technology) and some significant competitive advantages.
For more information, visit www.fpdigital.com.