Bitstream Inc. (NASDAQ: BITS) today announced that it has entered into a definitive agreement to sell its font business to Monotype Imaging Holdings, Inc. (NASDAQ: TYPE) in a cash merger valued at $50 million, subject to closing adjustments. The transaction will be effected as a cash merger of a subsidiary of Monotype Imaging into Bitstream. Prior to the closing of the merger, Bitstream will distribute to Bitstream shareholders shares of a newly-formed company, Marlborough Software Development Holdings Inc. (”MSDH”), that was formed to hold all of Bitstream's non-font assets, including the Pageflex business and Bolt browser technology. MSDH will also assume certain liabilities from Bitstream, primarily those related to the non-font assets.
Commenting on these developments, Bitstream’s chairman and interim CEO, Amos Kaminsky, stated "We are pleased with the developments announced today. We believe these proposed transactions will provide Bitstream shareholders with significant cash proceeds by monetizing Bitstream's legacy font business for an amount which represents most of Bitstream’s current market capitalization, while providing shareholders with continuing "pure play" ownership of Bitstream's Pageflex business and Bolt technology."
Kaminsky added, ”The board of Bitstream has named Pinhas Romik, who is currently the General Manager of the Bitstream Pageflex business, to serve as the CEO of MSDH effective immediately. Pinhas has been manager of our Pageflex division with responsibilities for the integration of the iWay acquisition, as well as helping foster significant relationships such as the one we have recently established with Heidelberg. It is logical for Pinhas to serve as the Chief Executive Officer of MSDH and to continue to serve in that role should the spin-off occur.”
Mr. Romik stated, "I want to thank the current board members of Bitstream for their support. I continue to be excited by the opportunities for Pageflex as a leader in the print and marketing automation tools business. I am also excited about opportunities to extend the reach of our Bolt browser technology.