Optibase agreement to acquire Media 100 assets

Optibase and Media 100 have agreed a definitive loan to provide up to $1 million of secured debtor-in-possession (DIP) financing, and an asset purchase agreement which, subject to court approval, calls for Optibase to buy substantially all the assets of Media 100 for $2.5 million (less the amount of any funding advanced).
In accordance with its previously announced plan to facilitate the transaction, Media 100 has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in United States Bankruptcy Court for the District of Massachusetts (the Court). The sale will be subject to various conditions, including approval by the Court in the Chapter 11 case. Optibase and Media 100 have requested that the Court, upon expedited hearing, enter an order setting forth sale procedures, including notice and overbid provisions which would be applicable to the transaction.
“Following approval by the Court, Optibase intends to keep Media 100 activity intact as a unit in Optibase in order to continue the development, sales, and support of the Media 100 products,” said Tom Wyler, Chief Executive Officer and Chairman of the Board of Optibase. “We strongly believe in the capabilities of the Media 100 team of employees and their vision for 844/X and Media 100 HD, and believe that with our financial strength the Media 100 line of products will be able to realize their potential.”
The acquisition is subject to a number of contingencies, including approval by the Court. In the event the transaction is not completed, Media 100 may be required to cease operations.
(GB)