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CounterPath to Acquire NewHeights |
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Written by PRESS RELEASE
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Tuesday, 19 June 2007 |
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Page 1 of 3
VANCOUVER, CANADA - June 18, 2007 - CounterPath Solutions, Inc. (OTCBB: CTPS), a leading
provider of VoIP (Voice over IP) and Video over IP SIP softphones,
today announced that it has entered into a definitive agreement to
acquire NewHeights Software Corp. Under the terms of the agreement,
CounterPath will acquire all of the shares of NewHeights through the
issuance of 40,250,000 shares of CounterPath's common stock.
In addition, CounterPath will issue 13,750,000 shares of common stock at $0.40 per share for an investment of $5.5 million for an aggregate transaction value of $21.6 million. The acquisition and investment will allow CounterPath to combine its existing softphone solutions with NewHeights' enterprise softphone and IP application server products, enabling the company to provide best in class voice and multimedia collaboration services to a wider range of customers within the IP communications market.
As part of the transaction, Wesley Clover, a private equity firm headed by Sir Terence H.
Matthews, will invest in CounterPath to advance the company's strategy of being the dominant
endpoint provider for fixed and mobile operators and infrastructure providers across all desktop, embedded and mobile device platforms.
"NewHeights and CounterPath are both innovative and agile companies, joining forces at an opportune time as their respective markets take off and companies are making long term product decisions," said Sir Terence H. Matthews, Chairman of Wesley Clover. "I believe that the potential for business growth is excellent. Wesley Clover has mentored and made significant investments in more than 50 successful technology companies and we are pleased to include CounterPath among our investments."
The combined company will maintain the CounterPath name and brand, will have approximately 100 employees and will be headquartered in Vancouver, British Columbia with a development office in Ottawa, Ontario. Sir Terence H. Matthews, Chairman of Mitel Corporation and Wesley Clover, will become the Chairman of CounterPath. Greg Pelling, President of NewHeights and formerly with Cisco Systems and PricewaterhouseCoopers, will be the company's Chief Executive Officer. Mark Bruk, CounterPath's founder, will remain active in the company and on the board as Vice Chairman.
"The acquisition of NewHeights will deliver value to our customers, partners, employees and
shareholders, while making us the clear choice for new customers," said Mark Bruk, current
Chairman and Chief Executive Officer of CounterPath. "This transaction allows us to advance
our roadmap and bring in additional capital and a strong strategic investment partner. Our focus and resolve is strengthened as we continue on our path to create the industry's leading
consumer and enterprise softphone solution provider."
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