August 5, 2009 02:57 AM | Press Release
August 5, 2009 (Boston, MA) – Covington Associates announced today it acted as financial advisor to On2 Technologies, Inc. (NYSE Amex: ONT), a creator of advanced video compression technologies, in its proposed sale to Google Inc. (NASDAQ: GOOG). The pending stock-for-stock transaction is valued at $0.60 per share or approximately $106 million. The number of Google shares to be issued in the transaction will be determined based on the 20-day volume-weighted average trading price of shares of Google class A common stock for the 20 trading day period ending on the second trading day prior to On2’s shareholders’ meeting to consider and approve the merger agreement. On2’s board of directors has approved the transaction.
John Bowen, Director at Covington Associates, commented “The expanding use of video across Internet, mobile and enterprise networks demands a more efficient approach for video delivery and On2 has been a leader in pushing the envelope of advanced video compression technology.”
Tom Cibotti, Managing Director at Covington Associates, said “This transaction demonstrates Covington Associate’s long history advising publicly traded companies, and our firm’s commitment to working with technology companies.”
The transaction is expected to close in the fourth quarter of 2009 following shareholder approval and customary regulatory approvals.
About On2 Technologies, Inc.
On2 Technologies, Inc. creates advanced video compression technologies that power the video in today’s leading desktop and mobile applications and devices. Customers include Adobe, Skype, Nokia, Infineon, Sun Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 is headquartered in Clifton Park, New York.
To learn more about On2, visit www.on2.com.
About Covington Associates, LLC
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare, and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to nearly $2 billion for both private and publicly traded companies.
To learn more about Covington Associates, visit www.covllc.com.
ON2 ACQUIRED BY GOOGLE