[October 06, 2009] NeuLion Inc announces agreement to acquire Interactive Netcasting Systems Tweet (Canadian Press DataFile Via Acquire Media NewsEdge) PLAINVIEW, N.Y. _ Internet sports coverage provider NeuLion, Inc. (TSX: NLN) has an agreement to acquire B.C.-based webcasting company Interactive Netcasting Systems Inc in a cash-and-stock deal worth more than $8.1 million. NeuLion's top clients include the National Hockey League and the American Hockey League while Burnaby-based Interactive counts the Western, Ontario and Central hockey League among its largest clients. Interactive also provides services to government and entertainment sectors with clients including CTVNews Channel and the Business News Network. Under the terms of the deal, Interactive's shareholders will receive six million common shares of NeuLion, $2.5 million cash, one million warrants that will allow the holder to acquire NeuLion common shares at US$1.35 and 500,000 warrants to acquire NeuLion common shares at US$1.80. NeuLion's shares closed at 94 cents Monday on the Toronto Stock Exchange, making the stock portion of the deal worth about $5.6 million, not counting warrants. Both series of warrants are exercisable for a period of two years after closing but would be worthless if NeuLion's shares don't appreciate in value above the exercise prices. With the deal NeuLion, which is expected to close Nov. 1, will absorb Interactive's 20 employees and its industry contacts. "We are delighted to welcome Hugh Dobbie and his team at (Interactive) as well as all of (Interactive's) partners and clients into the NeuLion family," said NeuLion chief executive officer Nancy Li. "We think there are unique synergies that exist between many of our respective sports and other clients that can contribute to the acceleration of the growth of both businesses," Li said. With offices in Toronto, Plainview, N.Y. and Sanford, Fla., NeuLion provides technology, sports programs and other content in various languages for Internet TV. It also handles billing and customer services. Interactive, based in the Vancouver area, offers a range of software tools for broadcasting video over the Internet. The transaction is still subject to approval from Interactive's shareholders, the court, and the Toronto Stock Exchange. (c) 2009 The Canadian Press [ Back To TMCnet.com's Homepage ]