Lifesize Enters Asset Purchase Agreement with Enghouse Systems, Reorganizes Capital Structure

Video conferencing and omnichannel contact center solutions provider Lifesize Inc. has announced its latest move to reorganize capital structure and benefit its customers with an Asset Purchase Agreement (APA) that it has signed with Enghouse Systems. The enterprise software solutions company offers vertically focused solutions for contact centers, video communications, healthcare, telecommunications, public safety and the transit market.

As per the deal, Enghouse will acquire the majority of Lifesize's assets and brands. This includes the company’s Kaptivo, ProScheduler, Serenova, and Telstrat offerings. To facilitate the purchase and best benefit its customers, partners, employees, and stakeholders the company has decided to file voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, Laredo Division.

Lifesize quickly became a well-known name in the business world in 2003 when it introduced in-house high-definition video meeting solutions and cloud-based contact centers. The company serves millions of users through channel partners in over 100 countries.

“Lifesize’s global reach, customer base, and innovative technology enhances the way the world communicates and improves customer experiences in the new realities of hybrid and remote work,” said Michael Yoshimura of FTI Consulting, Co-Chief Restructuring Officer of Lifesize. “The Lifesize multivendor video meeting connectivity is needed by global enterprises now more than ever. We are optimistic about the future for the Company and are confident Lifesize can continue to deliver value and certainty to its blue-chip customer base worldwide.”

The company plans to continue operations as usual while it secures financing during its sale and reorganization process. According to officials, it is finalizing $5 million debtor-in-possession financing from its existing lender and will use existing working capital facility to provide liquidity to support day-to-day operations during the Chapter 11 process.

Commenting on the deal, and what led to the company’s current status, Marc Bilbao of FTI Consulting, Co-Chief Restructuring Officer of Lifesize said, “Lifesize was founded on the vision of providing life-like visual communication solutions to allow businesses to thrive in a digital world. However, due to the global pandemic, the need for in-office video conference solutions evaporated essentially overnight. This ultimately put a pause on Lifesize’s core business model and a strain on its financial structure. During the Chapter 11 process, Lifesize will remain focused on serving its global customer base of omnichannel contact centers and 4K video conferencing solutions.”

Edited by Greg Tavarez