…the earn-out target is expected to be achieved, and that Cartesian will pay to the sellers of Farncombe the full amount of the earn-out in cash and shares of Cartesian stock by no later than July 31, 2017.
The full details of the purchase were never disclosed, but this does show there is healthy demand for advice about new over-the-top television services as telcos switch from selling minutes and megabits to supplying football and films. Cartesian CEO Peter Woodward was upbeat about Farncombe’s contribution to his business:
After two years of strong performance from Farncombe, we are pleased to finally bring this consideration process to a close and officially consolidate the two corporate entities. Farncombe’s ability to achieve its full earn-out target is a testament to not only its impeccable reputation in the video delivery space, but also to the managerial strength of the unit’s principals who have collectively guided the company towards continued growth and success. Looking ahead, we will continue to leverage Farncombe’s expertise in OTT and other video services and the network competencies to drive additional cross-selling opportunities.
Woodward will be glad to share some good news with investors after a recent rough patch. Cartesian’s FY16 results showed continued losses and a downturn in the final quarter. This led the company’s share price to once again drop below the crucial dollar mark; if it does not recover the business may need to delist from the Nasdaq stock market. This week the shares have dipped below 70¢ though this is still somewhat above the 51¢ low point for trading during the last year.