PC-centric software publisher IMSI on Wednesday announced plans to acquire StuffIt maker Aladdin Systems Inc. in a transaction valued at about $10 million over the next three years.
IMSI executives said that Aladdin’s acquisition would help their company expand its offerings in the utilities market. IMSI President Gordon Landies cited Aladdin’s experience with electronic software distribution technology as a key win in the acquisition as well.
Aladdin’s portfolio includes StuffIt, the compression software that saw ubiquitous deployment on the Mac platform since its inception. Other Aladdin products include Internet Cleanup, Spring Cleaning, Ten for X and other titles. IMSI make TurboCAD and DesignCAD software for the PC, as well as business products and more.
IMSI’s long-term strategy for Aladdin’s titles was not made clear during this announcement, although Aladdin CEO Jonathan Kahn remarked, “IMSI is a leader in the software industry and we expect to accelerate our growth by expanding our product offerings and customer base. I look forward to joining forces with IMSI to continue to grow and strengthen our award winning software products.”
The deal will put $8 million in cash, stock and a convertible note in Aladdin Systems Holdings Inc.’s pockets, subject the usual closing conditions. An earn-out could also result in an additional $2 million to be paid out over the next three years. The deal is expected to close in March 2004.
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