NeuLion Acquires Online Sports Broadcaster INSINC
Sunday, November 1, 2009
NeuLion, Inc. (TSX: NLN), an end-to-end IPTV service provider of live and on-demand sports, international and variety programming over the Internet, has acquired Canadian-based Interactive Netcasting Systems Inc. (“INSINC”), a leading provider of sports webcasting services.
INSINC is based in Burnaby, British Columbia and has 20 employees. INSINC recorded audited revenue of CDN $5.6 million, EBITDA of $.4 million and net income of $.3 million in the year ended December 31, 2008. For the six months ended June 30, 2009 unaudited revenue was $2.9 million, EBITDA was $.2 million and net income was $.2 million.
NeuLion CEO, Nancy Li, stated, “We are delighted to welcome Hugh Dobbie and his team at INSINC as well as all of INSINC’s partners and clients into the NeuLion family. We think there are unique synergies that exist between many of our respective sports and other clients that can contribute to the acceleration of the growth of both businesses.”
INSINC offers a range of software tools for broadcasting video content over the Internet (IPTV). Its largest clients are in the area of sports including the Western Hockey League (WHL), Ontario Hockey League (OHL), Central Hockey League (CHL), British Columbia Hockey League (BCHL), Central Canadian Hockey League (CCHL), Alberta Junior Hockey League (AJHL), and Central Junior Hockey League (CJHL).
When combined with NeuLion clients such as the National Hockey League (NHL) and the American Hockey League (AHL), the Company will have an unmatched presence in the delivery of online video experiences for the North American hockey world.
INSINC’s other sports clients include the Canadian Football League (CFL) and when combined with NeuLion clients the National Football League (NFL) and the approximately 175 US colleges, schools and conferences for which NeuLion provides online broadcasting of sports programming, the combined Company will have an unmatched presence in the delivery of online video experiences for the North American sports world.
INSINC also provides its services to government and entertainment broadcasting sectors with clients including Business News Network (BNN), CTV News Channel, Rogers Sportsnet, TVG Networks, The Canadian Press, the Canadian Ministry of Justice, the BC Ministry of Education, and the Legislative Assemblies of British Columbia and Newfoundland and Labrador among others.
Hugh Dobbie, Jr., President of INSINC, commented, “We are excited to have our clients and their end user constituents benefit from the combined resources of NeuLion and INSINC. Furthermore, our shareholders will be positioned to participate in the growth we expect in the IPTV industry for our combined company.”
Nancy Li added, “We believe that we are still only in the early stages of the evolution of IPTV and that this evolution will dramatically change how businesses interact with their consumers online and how viewers will consume media. NeuLion, with our particular expertise in sports and international programming, will now be further enhanced by the strong client relationships of INSINC, their strong team of people with unique domain expertise and the synergies that we believe will come from this business combination.”
INSINC retained Alexander Capital Group Inc. and Parklea Capital Inc. as financial advisors to assist in this transaction.