Capital IP completes $36.2 million structured credit investment in Magnum Semiconductor
Magnum Semiconductor Inc. (“Magnum”) announced that it has secured a $36.2 million structured debt financing from Capital IP Investment Partners (“CapIP”). The proceeds from the financing will be used to retire existing debt, continue to invest in the technology roadmap and for working capital purposes.
Magnum CEO Gopal Solanki commented, “With this unique financing, Magnum has significantly strengthened our balance sheet and working capital position. The team at CapIP delivered a novel structured debt solution which allows Magnum significant financial and operating flexibility as we continue to focus on and invest in our next generation video compression technology and products. We are excited that our current products are being adopted by many of the leading original equipment manufacturers (“OEM’s”) in our industry and being deployed at many of the most well recognized major service operators around the world.”
Riyad Shahjahan, Partner at CapIP, stated, “We are excited to partner with Magnum as they continue to drive innovation through their software-based solution to deliver best-in-class video, audio and data to the world’s leading OEM’s. The exponential growth in video traffic will further expand the demand for Magnum’s solutions in real-time video compression in the cable, satellite, telco/IPTV and mobile/over the top (“OTT”) markets. We are impressed by Magnum’s technology, customers, growth profile and the depth and experience of its management team and look forward to working with them on the next stage of their evolution.”
About Magnum Semiconductor:
Magnum is a leading provider of video compression and processing solutions for the video broadcast networking market. Magnum’s solutions include its proprietary video management ASIC’s, algorithms and firmware. Magnum provides best in class products, tools and technologies for the entire video content creation and distribution chain from contribution and production through distribution over cable, satellite, IPTV and OTT. Magnum is headquartered in Silicon Valley, California and has R&D centers in Waterloo, Canada and Beijing, China.