Qumu Closes Sale of Rimage Disc Publishing Assets to Redwood Acquisition

Qumu Corporation, in enterprise video platforms, announced the closing of its previously announced all-cash sale of the Rimage disc publishing assets to Redwood Acquisition, Inc., a wholly-owned subsidiary of Equus Holdings, Inc.

Redwood Acquisition is now known as Rimage Corporation.

The completion of this transaction enables Qumu to focus effort and resources exclusively on the company’s high growth enterprise video content management software business, which has been recognized as a leader by several industry analysts including Gartner and Forrester.

“Today marks a milestone in Qumu’s transformation into a high growth software company with video solutions that are considered best of class by our customers and independent industry analysts,” said Sherman Black, president and CEO. “The completion of the sale of our disc publishing assets required a tremendous amount of work by our organization and Equus and we deeply appreciate the efforts put forward by both teams. In addition, and equally important, we appreciate the overwhelming support our shareholders provided us with their vote. Our Qumu team is now totally focused, and dedicated, to capitalizing on the significant market opportunity we have in delivering video for the enterprise, particularly through mobile and cloud applications.“

The completion of this transaction provides Qumu with approximately $19 to $20 million in net cash after closing costs, post-closing adjustments, taxes and the assumed return of the $2.3 million, 15 month escrow.