GenArts, Inc. Acquires wondertouch – Announcement FAQ

What did GenArts and wondertouch announce?

GenArts has acquired wondertouch. This acquisition includes particleIllusion, particleIllusion SE, pIllusion AE, Emitters and Pro Emitters as well as all associated intellectual property and technology. Alan Lorence, the CEO of wondertouch and creator of particleIllusion, has joined the GenArts team as a full time developer.

When does this acquisition become effective?

The acquisition is effective immediately.

Why did GenArts acquire wondertouch?

When Katherine Hays joined GenArts as the CEO in 2008, she laid out a vision for accelerated growth via acquisition as well as organic product development. This path was specifically chosen to align with a growing momentum shift away from in-house visual effects development, and toward the standardization of tools from a trusted vendor. This acquisition of wondertouch, coupled with GenArts' acquisition of SpeedSix Software Ltd and the additions to the GenArts executive team in 2009, is another key step toward realizing that vision because it not only gives us a respected product today, but it also provides an important core particle technology base upon which we can explore new and innovative products.

How does the acquisition benefit wondertouch?

wondertouch has grown to the size that required Alan Lorence, the CEO and creator of particleIllusion, to focus more on running the company than developing software. The acquisition by GenArts allows Alan to leverage the substantial resources of GenArts to manage the sales and marketing efforts, freeing him to return to his passion - product development. Alan will now have the opportunity to collaborate with the GenArts development team to not only evolve current products, but to explore ways to leverage core technologies from both companies to build new, innovative products targeted to a broader audience.

How does the acquisition of wondertouch affect GenArts customers?

GenArts has received consistent feedback from our customers requesting a world-class particles engine. The wondertouch acquisition is a step toward delivering on that request. wondertouch particleIllusion has an excellent reputation in its segment of the market, and we see this as an outstanding opportunity to leverage wondertouch's core technology to explore new products that GenArts can offer to our customers across all sectors of the film and video industry.

What will happen to wondertouch products?

wondertouch products will continue to be offered to customers by GenArts in the same way they have purchased them before. We felt it was very important that customers see no interruption in the way wondertouch products are sold and supported. This means that customers can still go to www.wondertouch.com to purchase all particleIllusion products and Emitters and to get support for the products.

Will you continue to release monthly emitters as Alan has done in the past?

Yes. particleIllusion emitters will continue to be released on a regular basis as in the past.

Will pIllusion AE still ship?

Yes. The highly anticipated plug-ins for Adobe After Effects (Windows version) will now ship in the first half of December 2009 and will officially be called particleIllusion for After Effects. A version for Mac will follow in the first half of February 2010.

What will GenArts do with wondertouch products in the future?

The GenArts development team will be working very closely with Alan Lorence to explore ways to build upon core wondertouch technologies to deliver future products that may be targeted to a wide range of customers and applications.

Will particleIllusion now be bundled with Sapphire, Monsters or Raptors?

For now, particleIllusion, Monsters, Raptors and Sapphire will continue to be sold in their current forms through their current channels and at their current price points.

Will current users of particleIllusion have to buy other GenArts products in order to use the product they have already purchased?

No. Current wondertouch clients can continue to use the product as they normally would.

What will happen to wondertouch’s employees?

Alan Lorence, the creator of particleIllusion, has joined GenArts as a full time developer. Alan will continue to lead the particleIllusion development efforts, and will continue to release new Emitters on a regular basis. Moving forward, Alan will now have the benefit of the full support of the GenArts development team behind him. In fact, Alan has already been working closely with the GenArts team as we prepare for the December release of particleIllusion for After Effects.

Will wondertouch employees be remaining in St. Louis, Missouri?

Yes. Alan Lorence will remain based in St. Louis, Missouri.

If I am a GenArts reseller, can I now sell wondertouch products?

We will work to evolve our reseller program in the near future to provide our resellers the most efficient way to offer the entire line of GenArts products and to maximize value and flexibility for their customers. Until then, GenArts resellers will need a separate authorization to sell wondertouch products.

If I am a wondertouch reseller, can I resell GenArts products?

We will work to evolve our reseller program in the near future to provide our resellers the most efficient way to offer the entire line of GenArts products and to maximize value and flexibility for their customers. Until then, wondertouch resellers will need a separate authorization to sell GenArts products.

How do I get support for a wondertouch product?

Customers should continue to visit www.wondertouch.com for their product support needs just as they always have.

Who do I contact to purchase a wondertouch product?

Customers should continue to visit www.wondertouch.com or an authorized wondertouch reseller to purchase just as they always have.

Are you announcing any new products today?

Yes. We are announcing that particleIllusion for After Effects ( Windows version), the highly anticipated plug-ins for Adobe After Effects will ship in December 2009. A version for Mac will follow in February 2010. Please visit www.wondertouch.com for more details.

What were the terms of the deal?

Both GenArts and wondertouch are privately held companies. The terms of the deal were not disclosed.

Were financial problems at wondertouch in any way a motivation for selling the company?

No. Both companies see significant strategic growth opportunities as a result of this acquisition.

How long have discussions around this acquisition been going on?

Unfortunately, we cannot discuss any additional details surrounding discussions or negotiations.

Were other companies seeking to acquire wondertouch? Was there a bidding war?

Unfortunately, we cannot discuss those details.

Was this an acquisition involving cash only or is there some equity in the joint company involved?

Because the companies are privately held, these details have not been disclosed.

What is the revenue of the combined company?

Both GenArts and wondertouch are privately held companies. Financial metrics are considered confidential information.

How many employees will the combined company have?

Both GenArts and wondertouch are privately held companies. Therefore, this is considered confidential information.

Does GenArts plan any additional acquisitions this year?

That is confidential information. We have announced an aggressive growth strategy and wondertouch is a key component of that strategy. We continue to review other strategic acquisitions at this time and we’ll announce them as appropriate.