OMT Inc. plans to sell off its Intertain Media subsidiary to its own CEO, Bill Baines, in a deal worth approximately $172,500.
Intertain Media deploys background music, in-store messaging, on-hold features and digital signage services to retail and commercial clients in Canada, where OMT is headquarters. Baines will continue in his role of CEO of OMT (which also is parent of iMediaTouch, not part of the transaction).
The corporation said the sale is the result of a 10-month process to find a buyer. “The board of directors had determined that the potential sale of Intertain would be in the best interest of the company considering Intertain had experienced limited recent growth and would require continued investment to realize its possible future potential,” it stated.
OMT said the directors considered three proposals, including two from outside the company. “The independent directors of the corporation considered all of the proposals received and determined that the proposal from Mr. Baines was superior in a number of ways, including total valuation, certainty of closing and the ability to participate in potential future transactions involving Intertain, and unanimously approved the transaction,” it stated in the announcement.
The deal takes effect May 31 and is subject to final required approvals.
OMT said major backers GrowthWorks Canadian Fund Ltd. and Renaissance Capital Manitoba Ventures Limited Partnership already have signed off on the transaction.