International Datacasting Corp. (TSX:IDC) has a deal to sell its broadcast products business for US$4.1 million cash to a private California-based company with a complementary lineup of technology.
Pico Digital Inc. of San Diego, Calif., will also provide US$1 million in bridge financing to the Ottawa-based technology company.
The definitive agreement includes IDC's product portfolio, customers and supplier relationships.
Pico said the two companies have highly complementary product portfolios for data broadcasting, audio distribution and digital cinema.
A majority of IDC's employees are also expected to join Pico Digital, which will have offices in the United States, Canada, Mexico and other Latin American countries, Taiwan, Japan and the Netherlands.
"IDC has been at the forefront of innovation in the satellite industry for many years," said Ian Lerner, Pico's chief executive officer. "We are very excited to add IDC's product portfolio to our line-up of market leading solutions."
IDC announced in February that it was in talks to sell its business.
Based on its Tuesday closing stock price, IDC had a total stock market value of about C$3.6 million.