Covington Associates Advises ICT, Inc. in Sale to ViaSat, Inc.
Boston, MA February 20, 2007 Covington Associates LLC announced today that it acted as the sell-side advisor to Intelligence Compression Technologies, Inc. ("ICT"), a maker of data compression products in its sale to ViaSat, Inc. (NASDAQ: VSAT), a maker of satellite communications products. The deal was valued at $20 million in cash and stock, with up to an additional $34 million in potential earn out over the next two years.
Based in Quincy, MA, ICT provides corporations, internet service providers (ISPs) and satellite/wireless carriers with patented data compression techniques, advanced transport protocols and application optimization to substantially increase the speeds of either narrowband or broadband terrestrial, wireless or satellite services. The company's primary product, AcceleNet(TM), is a WAN/wireless data acceleration product that optimizes Web and email applications over slow or long-latency data links. ICT began as a supplier of data compression software which was embedded into software products of licensees, including industry leaders in new media software for accelerating traffic over wired and wireless networks. ICT's data acceleration technology is a perfect complement for ViaSat's satellite networking products. ViaSat provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services.
"ViaSat has a technology and business culture where our business and people can thrive, and there are many opportunities for us to successfully grow our business while also applying our talents to give ViaSat products an additional advantage in the marketplace," says Michael Slygh, ICT's President.
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 over $1 billion for both private and publicly traded companies. To learn more about Covington Associates, visit www.covingtonassociates.com.