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 June 2009.
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.