Canadian company Enghouse Systems will acquire Minneapolis-based Qumu for $18 million.
The purchase price works out to be about 90 cents a share, which is a 105% premium to the 44 cents a share Qumu closed at on Friday.
Shares of Qumu closed at 88 cents a share Monday after news of the deal was disclosed.
Markham, Ontario-based Enghouse Systems provides enterprisewide communication tools. One segment provides solutions for call centers and the other provides a mix of services including video and cloud television solutions.
"The combination of Qumu's video creation, management and delivery solutions with Enghouse's video collaboration and streaming products strengthens the position of both companies in a competitive space," said Steve Sadler, chief executive officer of Enghouse Systems in a news release.
Qumu, a provider of enterprisewide video management tools for corporations, had received a delisting notice from the Nasdaq stock exchange this summer because its shares failed to meet the $1 per share minimum listing standard.
While companies have 180 days to rectify their share price, and can apply for an extension after that, an acquisition eliminates the uncertainty around a company's potential listing.
As of Dec. 31, 2021, Qumu had 108 employees. The company's finances have struggled for years.
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