GN Audio to Acquire Altia Systems

GN extends intelligent audio solutions leadership with digital video
to deliver integrated audio and video Unified Communication solutions.

CUPERTINO, Calif.–(BUSINESS WIRE)–Today, GN Audio has signed an agreement to acquire Altia Systems Inc.
(“Altia Systems”). Altia Systems, based in Cupertino, California (USA),
is a leading innovative developer of premium video communications
solutions utilizing digital multi-camera array technology. This market
is expected to grow significantly from a currently low penetration rate
fueled by easy to use (plug and play), integrated audio and video
Unified Communications solutions. The products from Altia Systems are
currently marketed under the brand PanaCast.

GN Audio is an established leader in intelligent audio solutions for the
CC&O (Call Center & Offices) market, operating under the Jabra and
BlueParrott brands. GN Audio professional headsets and speakerphones are
engineered to help businesses achieve productivity improvement,
enhancing job satisfaction and enabling people to work smarter and more
efficiently.

The total purchase consideration is up to USD $125 million on a debt and
cash free basis. As part hereof around USD $12 million is linked to
retention agreements to be expensed by GN Audio during 2019-2021.

The acquisition of Altia Systems allows GN Audio to expand into
integrated audio and video communications solutions, supporting
companies’ collaboration and meeting efficiency. GN Audio already
commands a strong position in the Unified Communications market with the
Jabra Evolve line of headphones and leadership in speakerphones for
small meeting rooms and personal use with the successful Jabra Speak
line of products. Adding video capability to these leading positions
gives GN Audio immediate access to the highly attractive market of
integrated audio and video solutions for small collaboration rooms –
so-called huddle rooms.

“We are pleased to have reached an agreement to acquire Altia
Systems,” said René Svendsen-Tune, President and CEO of GN Audio.
“The acquisition further strengthens our unique value proposition by
delivering leading integrated audio and video communications. Combining
GN Audio’s sound expertise, partner eco-system and global channel access
with the video technology from Altia Systems, we will take the
experience of conference calls to a completely new level.”

“Combining PanaCast’s immersive, intelligent video with GN Audio’s
intelligent audio solutions will enable us to deliver a whole new class
of collaboration products for our customers,” said Aurangzeb Khan,
President and CEO of Altia Systems. “PanaCast’s solutions enable
companies to improve meeting participants’ experience, automate
workflows, and enhance business efficiency and real estate utilization
with data lakes of valid information.”

“Intel invested in Altia Systems to bring an industry leading
immersive, Panoramic-4K camera experience to business video collaboration,”
said Dave Flanagan, Vice President of Intel Corporation and Senior
Managing Director of Intel Capital. “Over the past few years,
Altia Systems has collaborated with Intel to use AI and to deliver more
intelligent conference rooms and business
meetings. This helps customers make better decisions, automate workflows
and improve business efficiency. We are excited to work with GN to
further scale this technology on a global basis.”

In recent years, GN has built a solid track record of successful
acquisitions. In October 2016, GN Audio acquired VXi, a US based leading
innovative manufacturer of professional headset solutions. In July 2016,
GN Hearing completed the acquisition of Audigy, a pre-eminent provider
of business and performance management solutions to independent hearing
care professionals and leading University programs in North America. In
May, 2018, GN Audio acquired a majority stake in Innova Telecom, a major
distributor in India. In June 2018, GN invested in a partnership with
audEERING, the German AI technology company focused on soundscape and
voice analyses.

Altia Systems, which was founded in 2011, will under GN Audio’s
ownership initiate global commercialization of its highly differentiated
current products as well as invest in its exciting product pipeline.
More that 1,600 companies, including more than 200 universities, use
PanaCast products around the world. Current customers include Intel and
Uber. Altia Systems is a venture-backed company with Intel Capital as a
leading investor. An identified group of key people from Altia Systems
will continue to lead our Cupertino based development activities
following the transaction.

The agreement to acquire Altia Systems is contingent on certain
customary closing conditions.

About GN Group

The GN Group is a global leader in intelligent audio solutions that let
you hear more, do more and be more than you ever thought possible. Our
ambitious 150-year journey has taken us from telegraph cables to radio
waves and intelligent audio engineering. To celebrate our anniversary,
we look to our unique competences within medical, professional and
consumer audio solutions to help us continue to transform lives through
the power of sound.

GN was founded with a truly innovative and global mindset. Today, we
honor that legacy with world-leading expertise in the human ear, sound,
wireless technology, miniaturization and collaborations with leading
technology partners. GN’s solutions are marketed by the brands ReSound,
Beltone, Interton, Jabra and BlueParrott in 100 countries. Founded in
1869, the GN Group employs more than 6,000 people and is listed on
Nasdaq Copenhagen (GN.CO).

Visit our homepage GN.com – and connect with us on LinkedIn, Facebook
and Twitter.

About Altia Systems

Altia
Systems^® is a venture-backed company based in Cupertino,
CA., and is the creator of the PanaCast^® systems and
Intelligent Vision software products. Funded by Intel Capital and other
leading investors, Altia Systems’ PanaCast solutions deliver real-time
180° Panoramic-4K, Panoramic-5K and 4K 3D video streams from integrated,
synchronized and optimized multi-camera arrays. PanaCast systems and
Intelligent Vision (artificial intelligence) software products are used
by more than 1,600 companies worldwide, including 200+ universities, for
video collaboration, education, AR/VR, live broadcasting and machine
learning for autonomous systems. PanaCast system devices are designed
and assembled in the U.S. and have received prestigious awards such as
CES Innovation Awards Honoree, Frost & Sullivan New Product Innovation,
GOOD DESIGN award, Gartner Cool Vendor in Unified Communications, and
more.

For more information and the latest updates, visit www.panacast.com and
follow @PanaCast1 via
Twitter.

© 2019 GN Store Nord A/S. All rights reserved. Jabra and BlueParrott are
trademarks of GN Audio A/S. All other trademarks included herein are the
property of their respective owners.

Contacts

Contact:
Bob Griffin
bob@griffin360.com