WATERLOO, Ontario--(BUSINESS WIRE)--Magnet Forensics Inc. (“Magnet Forensics”) (TSX:MAGT) a developer of digital investigation software used globally by public safety organizations and enterprises, today announced that it has acquired DME Forensics Inc. (“DME”), a video and multimedia evidence solution company.
DME was founded in 2012, by Jimmy Schroering, a former forensic examiner with the U.S. Federal Bureau of Investigation’s Forensic Audio, Video and Image Analysis Unit. DME develops video and multimedia evidence solutions that are used by more than 900 public safety organizations in over 80 countries in investigations of terrorism, civil unrest, homicide, property crimes, child exploitation and other crimes. DME’s DVR Examiner enables investigators to recover video and metadata evidence from digital video recorder systems (DVRs) in a forensically sound manner. The acquisition will allow Magnet Forensics to integrate these capabilities into its digital investigation solutions and continue to sell DVR Examiner through its own sales and distribution channels.
“Consolidating video evidence with other data types is an important component of Magnet Forensics’ vision,” said Adam Belsher, chief executive officer of Magnet Forensics. “We are building a comprehensive digital investigation platform, powered by analytics, to help our customers identify and report on critical evidence in a timely and precise fashion. The video forensics capabilities of DME further strengthen and broaden our platform in this growth segment of digital investigations.”
“We’re thrilled to be joining Magnet Forensics, a company that shares our values and has demonstrated its abilities to deliver quality products that contribute to global public safety,” said Schroering, who is also DME’s chief technology officer.
According to the International Association of Chiefs of Police, video evidence “can be as voluminous as mobile device data, if not more so, and there are limited tools available to reliably enhance and analyze video.” A municipal police agency based in the state of Washington reported that it had recovered 34,590 videos in 2019, up from 331 videos in 2013. Video evidence has multiplied at such a staggering rate that a Chicago Police Department detective recently estimated that 80 per cent of the agency’s total cases now involve its analysis.
“Public safety organizations often deal with various video formats in the course of their investigations and DME’s solutions enable them to consolidate and analyze their video evidence,” said Magnet Forensics’ founder and chief technology officer, Jad Saliba. “Integrating DME’s solutions with our own will continue to drive efficiencies in investigations at a time when digital evidence volumes are increasing significantly.”
Under the terms of the agreement, Magnet Forensics’ U.S. affiliate will acquire DME for up-front cash consideration of $6,750,000 plus a $2,250,000 earn out over two years based on the achievement of certain integration-focused targets. Magnet Forensics will retain all of DME’s current employees, including its current management team.
About Magnet Forensics
Founded in 2010, Magnet Forensics is a developer of digital investigation software that acquires, analyzes, reports on, and manages evidence from digital sources, including computers, mobile devices, IoT devices and cloud services. Magnet Forensics’ software is used by more than 4,000 public and private sector customers in over 90 countries and helps investigators fight crime, protect assets and guard national security.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Magnet Forensics' acquisition of DME Forensics Inc. (“DME”) and its solution offerings; the timing and value of any potential earn outs under the transaction; the potential to provide customers with solutions to recover video and metadata evidence via DME’s product DVR Examiner; DVR Examiner’s integration with Magnet Forensics’ products; the retention status of DME employees and management; other potential benefits derived from the acquisition and DME’s solution offerings; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance, or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the expected future performance of the DME business based on its historical and projected performance as well as the factors and assumptions discussed in the section entitled, "Summary of Factors Affecting Our Performance" in documents filed with the Ontario Securities Commission and other securities commissions across Canada including Magnet Forensics’ most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our subordinate voting shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and Magnet Forensics does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.