Datawatch Corporation (NASDAQ: DWCH), the leading global provider of report analytics products and services, today announced that it has completed the previously announced purchase of the intellectual property underlying its Monarch Report Analytics platform from Raymond Huger, d/b/a Math Strategies.
The $8.5 million purchase was funded through the combination of a $4.0 million subordinated note with warrants from Massachusetts Capital Resource Company, $1.5 million of a $2.0 million working capital loan from Silicon Valley Bank and Datawatch’s cash balances. The transaction is expected to be accretive from a cash point of view as the savings in royalty payments should exceed the cash interest and additional costs. From an earnings perspective, the amortization of the intellectual property purchase and the non-cash interest expense from the warrants will result in an annual non-cash charge to earnings of $1.8 million during the 5 year amortization period of the intellectual property.
Michael A. Morrison, president and CEO of Datawatch, said, “We are very pleased to have completed this important transaction, which will provide us with the needed financial, marketing and technological flexibility to pursue our business strategy going forward.”
About Datawatch Corporation
Datawatch Corporation (NASDAQ-CM: DWCH) empowers organizations to transform the massive amounts of valuable information that is trapped in static reports, PDF files, HTML and other content-rich, but difficult-to-use data sources, into a dynamic information analytics system that accelerates and improves decision-making throughout their operations. Datawatch’s technology allows its more than 40,000 customers worldwide to leverage the investments they have made in reports from ERP, CRM and other custom applications into a high performance analytic information system at a fraction of the cost and time of traditional approaches. Datawatch is headquartered in Chelmsford, Massachusetts with offices in London, Munich, Sydney and Manila, with partners and customers in more than 100 countries worldwide. For more information, visit www.datawatch.com.