Publicly traded ClearOne paid around $2 million in cash and
assumed around $2 million of long-term debt held by privately held NetStreams,
ClearOne said. The company also said it will make earn-out payments over the
next two years based on achievement of certain performance criteria.
NetStreams, founded in 2002, has about 20 employees and will
continue to operate from its current location in Austin,
Texas, the companies
said. NetStreams's 2009 revenues are expected to exceed $5 million, compared
with ClearOne's reported revenues of $35.7 million for the fiscal year ending
ClearOne president/CEO Zee Hakimoglu called the purchase "a perfect
fit for both companies" because it brings "complementary products and sales
channels to both organizations." ClearOne is focused on audio solutions
for commercial markets, and NetStreams is focused on A/V distribution in
residential and commercial markets. "The combination will change the game by
enabling us to provide a comprehensive high-definition audio and video solution
to deliver the true promise of audiovisual and IT convergence," he said.