VANCOUVER, Feb. 27, 2015 /CNW/ - Avigilon Corporation ("Avigilon" or the "Company") (TSX:AVO), a leading global provider of end-to-end security solutions, today announced that it has agreed to purchase a nine-story, 135,000 square foot office building from TELUS Communications Inc. and TELUS Communications Company (together, "TELUS"), located at 555 Robson Street (the "Building") in downtown Vancouver, Canada for $42 million.
"This purchase is a sound investment that will help secure Avigilon's future," said Alexander Fernandes, Avigilon's founder, president, CEO and chairman of the board. "It will support our rapidly expanding workforce and serve as a distinguished location for our global headquarters."
The Building is adjacent to TELUS Garden, a $750 million real estate project currently underway. When completed, the million-square foot development will represent one of the most technologically innovative and environmentally-friendly communities in the world, boasting a new office tower, a stunning residential tower, landscaped outdoor space, and a variety of retail shops and restaurants. In addition to its prime location, the Building has been updated in recent years with the latest technology infrastructure, which is expected to allow for a seamless transition for Avigilon's knowledge-based employees to work in a high-tech environment.
Avigilon has paid a $2 million deposit to purchase the Building. The closing of the purchase is conditional upon Avigilon paying the balance of the purchase price, completion of certain required construction work, registration of applicable documentation with the City of Vancouver, and other conditions customary for a transaction of this nature. Avigilon expects the transaction to be completed in October 2015, and to transition its Vancouver-based employees to the new space in 2016.
Avigilon has several financing options available in connection with the purchase and will make the final determination in connection therewith closer to the closing date. Financing possibilities include, without limitation: mortgage; debt; equity raise; or using a portion of Avigilon's working capital. In the event that Avigilon elects to finance the Building acquisition through a mortgage or similar debt financing, the monthly financing costs are expected to be on par with, or less than, the rent Avigilon currently pays for its leased office in Vancouver. This sound investment along with financing flexibility positions Avigilon well to continue its ongoing industry-leading growth.
"We look forward to welcoming such an innovative B.C.-based company as our new neighbour on one of the most sustainable downtown blocks in North America," said Andrea Goertz, chief communications and sustainability officer, TELUS. "Selling this building as we move into our new national headquarters on the same block will free up significant cash we plan to invest back into broadband data infrastructure throughout the Lower Mainland, supporting our drive to offer TELUS customers the best, most advanced technology and service."
Avigilon has been recognized by Deloitte as one of the world's fastest-growing technology companies, including being ranked for five consecutive years on the Fast 50 list in Canada and four consecutive years on the Fast 500 list for North America.
"We are excited about this new investment and the security it brings to our future. With innovation and rapid growth in mind, we are ensuring our employees work in a world-class environment and community," said Mr. Fernandes.
Avigilon Corporation is defining the future of protection through innovative end-to-end security solutions. Avigilon's industry-leading HD network video management software, megapixel cameras, access control and video analytics products are reinventing the security market. Information about Avigilon can be found at avigilon.com.
AVIGILON and other marks used herein are the registered and/or unregistered trademarks of Avigilon Corporation and/or its subsidiaries in Canada and other jurisdictions worldwide. Other product names mentioned herein may be the registered and/or unregistered trademarks of their respective owners.
Certain statements contained in this news release, including all statements that are not historical facts, contain forward-looking information and forward-looking statements within the respective meanings of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements normally contain words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should' and similar expressions, and include, without limitation, statements respecting: the continued growth of Avigilon and its workforce; the financial impacts of the Building purchase on Avigilon; the expected closing date for the purchase of the Building and the expected date of transition to the Building; the availability of financing options and the costs thereof; and the completion of TELUS Garden. Forward-looking statements are not guarantees of future performance and are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Management has based the forward-looking statements on estimates and assumptions that it believed were reasonable at the time, including without limitation, assumptions that: Avigilon's revenues and employee base will continue to grow; the financial and other benefits of purchasing the Building will outweigh those of leasing a comparable space; the closing of the purchase of the Building and Avigilon's transition into the Building will occur on the timelines currently contemplated; the current financing options contemplated will remain available to Avigilon on similar or better terms; and TELUS Garden will be completed as planned. Actual results could be substantially different due to the risks and uncertainties associated with and inherent to Avigilon's business. Important risks that could cause such differences include, but are not limited to: Avigilon's inability to successfully execute its business strategies; the direction in which Avigilon's industry moves; research and development efforts may not result in the creation of new or enhanced products in a timely or cost-effective fashion or at all; the length of sales cycles; the availability of working capital; rapid technological advancement; increased competition; inability to obtain products and parts from suppliers on a timely basis and on favorable terms; inability to manage manufacturing and logistical services successfully; litigation risk; inability to manage cash flow, foreign exchange risk and working capital; risks related to doing business in foreign countries; a decrease in the value of the Building or a decline in the Vancouver commercial property market generally; a decline in lease rates for commercial real estate in Vancouver; monthly financing costs for the Building being higher than expected; the transaction's closing conditions, including necessary regulatory approvals and registrations, not being met in a timely fashion or at all; construction delays; inability to find qualified personnel or obtain necessary permits on a timely basis or at all; changes to Avigilon's financial situation; changes in the capital or credit markets, including higher interest rates; and TELUS Garden not being completed on time. More information about the risks and uncertainties affecting Avigilon's business is provided in the "Risk Factors" sections of each of Avigilon's final short form prospectus dated March 31, 2014 and Annual Information Form dated March 28, 2014; the foregoing documents are available under Avigilon's profile on SEDAR at www.sedar.com. Although Avigilon has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Avigilon. Accordingly, readers should not place undue reliance on forward-looking statements. Avigilon undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.
SOURCE Avigilon Corporation
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Stephanie Von Zuben
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