AUSTIN, Texas--(BUSINESS WIRE)--Lifesize Inc. (“Lifesize” or “the Company”), a leading, global provider of video conferencing and omnichannel contact center solutions, today announced it has entered into an Asset Purchase Agreement (“APA” or “Agreement”), with Enghouse Systems Ltd., a leading vertical enterprise software solutions company.
Under the Agreement, Enghouse will acquire substantially all the Company’s assets and brands, including Lifesize, Kaptivo, ProScheduler, Serenova, and Telstrat.
The APA is the first in a series of strategic actions that Lifesize is taking to reorganize its capital structure for the benefit of customers, partners, employees, and other stakeholders. To effectuate the sale, the Company has filed voluntary, pre-negotiated petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, Laredo Division.
“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.”
Lifesize will operate as usual throughout its sale and financial reorganization process to secure an owner with a long-term commitment to continuity, ongoing support, and investment. For that purpose, the Company is finalizing $5 million USD in debtor-in-possession financing from its existing lender. The financing, in addition to its existing working capital facility and upon approval from the Court, will provide liquidity to support day-to-day operations during the Chapter 11 process.
“Lifesize was founded on the vision of providing life-like visual communication solutions to allow businesses to thrive in a digital world,” said Marc Bilbao of FTI Consulting, Co-Chief Restructuring Officer of Lifesize. “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.”
As part of the reorganization process, the Company will file customary "First Day" motions to allow it to maintain operations in the ordinary course. Employees will continue to be paid as usual and continue their primary benefits without disruption. Lifesize intends to pay critical vendors under customary terms for goods and services received on or after the filing date. The Company expects to receive Court approval for these customary requests.
The Agreement remains subject to higher or better offers in accordance with bid procedures and deadlines, as well as Court approval.
The Company is represented in this matter by Pachulski Stang Ziehl & Jones LLP, and FTI Consulting is serving as Chief Restructuring Advisor and financial advisor. Piper Sandler & Co. is acting as exclusive investment banker and financial advisor.
For more information about Lifesize’s Chapter 11 case, visit www.lifesizeinfo.com or call 888-647-1737 (USA and Canada); 310-751-2624 (International).
Lifesize video conferencing and omnichannel contact center solutions are keeping us connected. Founded in 2003, Lifesize created the world’s first high-definition video meetings and cloud-based contact centers. Serving millions of users through channel partners in over 100 countries, the company lives by the philosophy “There Is Nothing More Important than Our Customers”. Learn more online at www.lifesize.com.
About Enghouse Systems Ltd.
Enghouse Systems Ltd. is a Canadian publicly traded company (TSX:ENGH) that provides vertically focused enterprise software solutions focusing on contact centers, video communications, healthcare, telecommunications, public safety and the transit market. Enghouse has a two-pronged growth strategy that focuses on internal growth and acquisitions, which are funded through operating cash flows. The company has no external debt financing and is organized around two business segments: the Interactive Management Group and the Asset Management Group. For more information, please visit www.enghouse.com.