Genuity buys digital archive division for $38m

Canadian private equity firm Genuity Capital has acquired the Front Porch Digital broadcast archive division of US IT company Incentra Solutions for $38m, in a deal structure that includes future royalty payments.

Front Porch Digital, the digital broadcast archive management division of Boulder, Colorado-based Incentra Solutions, announced its sale to the Toronto-based private equity fund Genuity Capital Partners in a deal valued at $38 million (€29.7 million, C$42.8 million).

The purchase price consisted of $33 million in cash, with an additional $5 million in royalty payments based on sales of Front Porch Digital software over the next two years. The sale includes all of Front Porch’s patents, intellectual property and product lines. Front Porch will remain in Boulder as an independent business, and will retain its current management.

Front Porch provides software, hardware and services for digital archive management for broadcasters and media companies. Its archiving technology is in 140 installations in more than 40 countries, and manages 4.5 million hours of broadcast content. Currently, most such content is stored on videotape, but Front Porch—and Genuity—are betting that their form of digital archiving will push out such technology.

Genuity, which currently manages a C$150 million fund, will pursue an aggressive growth strategy despite its relatively hands-off stance. “We believe in the team, their products, and their significant competitive advantages,” said Genuity managing partner Christopher Payne. “Our plans are completely aligned with those of management. We intend to invest in the business to help Front Porch Digital extend its dominance globally on all fronts.”