When will the sale be complete?

The sale is expected to be completed by July 31, 2014, pending shareholder approval and other closing conditions.

What are the benefits to the Qumu software business?

The sale frees Qumu to focus on its fast-growing software business. It positions Qumu even better to support the growth of its business by adding additional cash. Qumu retains its global footprint and experienced software-focused global team.

How will my employment be affected by the signing of the purchase agreement between Qumu and Equus Holdings and RIMAGE?

For the vast majority of software employees working outside of the Minnesota office, you will feel little to no change in daily operations, job functions or reporting relationships. Software Employees, specifically those located in our Minnesota office who assist with the Rimage business, will be asked to provide additional support as we work through the transition.

Employees should be aware that nothing in this Q&A or with the acquisition of Rimage changes the employment relationship between Qumu Corporation and any employee.  U.S. employees will continue to have an at-will employment relationship with Qumu. For those employees outside of the U.S. or U.S. employees with agreements with Qumu, their employment agreements will continue to remain in full force and effect in accordance with their terms. 

Between now and the closing date, we need all employees on all teams – both those within disc publishing and software – committed to ensuring there is minimal disruption to either business. We know that a transaction like this can raise many questions. The information contained in this Q&A is intended to answer some of the questions on your mind at this point. This is not intended to be an all-inclusive list of questions or answers. You should also know that there are some matters that legally we cannot discuss until an appropriate SEC filing is made. As you’ll see, there are several questions that we cannot yet answer at this time. We hope that over the next few days and weeks, you will continue to raise questions and send them to Sonja Grunlan. Sonja will collect all employee questions and ensure information is shared as soon as possible.

What positions will remain in Minnesota and what about the Minnesota office?

A process is being put in place for a smooth transition to separate the two businesses once the sale is closed.

At closing, RIMAGE and Qumu will enter into a fifteen month transition services agreement to manage how resources (people, facilities and systems) will be shared between the companies following closing, both in the U.S. and outside the U.S. Some Qumu software employees who do work for the Disc Publishing business will continue to provide their services to the Disc Publishing business following closing under the transition services agreement. Additional information about how the transition services agreement will affect the work of Qumu employees following closing will be available at a later date.

Following the closing, Qumu will lease a portion of the Minnesota headquarters building from RIMAGE for its software operations, but expects to relocate employees and operations from this building to other local office space in the future following the end of the transition.

Qumu Minnesota will continue to provide Marketing, HR, IT, Finance, Supply Chain and other supporting functions. However, we are a global company and will continue to hire where we find the best talent and expand functions and/or people where needed.

Will I need to relocate to the San Bruno office in California?

There are no current plans to relocate people or functions due to the transaction. Following the closing, Qumu will lease a portion of the Minnesota headquarters building from RIMAGE for its software operations, but expects to relocate employees and operations from this building to other local office space in the future following the end of the transition.

How does this affect my current work?

For those solely focused on Software, the activities associated with the sale of Rimage has little effect on your day to day duties. For those individuals supporting both business, managers will work with you on transition needs. Overall, we are focused on business as usual. Continued execution and focus are required for the business to be successful both now and after we close. Your manager will update you with information you need to know as we get closer to the targeted closing and transition date.

Will the sale of Disc Publishing limit the funds that we have to invest in the Software business?

Cash deployment is a regular part of our board’s strategic planning process. The board will continue to evaluate how best to grow shareholder value and how best to deploy our cash to support our Software business and to achieve our future goals. The sale of Disc Publishing provides the cash at the time of closing as opposed to the cash being delivered over time.

What should I do now?

It is business as usual. Our current work plans and priorities remain in place. We need everyone to keep moving forward and executing so we can achieve our business goals.

Important Transaction Information

In connection with the proposed sale of disc publishing assets to Equus Holdings, Inc. and Redwood Acquisition, Inc., Qumu Corporation will file a proxy statement with the SEC. Shareholders and investors are advised to read the proxy statement when it becomes available because it will contain important information about the asset sale transaction and the Company. Shareholders and investors may obtain a free copy of the proxy statement (when available) and other documents filed by Qumu with the SEC at the SEC’s web site at www.sec.gov. Free copies of the proxy statement, once available, and the Company’s other filings with the SEC, may also be obtained at www.qumu.com by following the Quick Link for “Investors” and then following the link to “SEC Filings.” Free copies of Qumu’s filings may be obtained by directing a written request to Qumu Corporation, 7725 Washington Avenue, Minneapolis, Minnesota 55439, Attention: James R. Stewart or by telephone at 952-683-7900.

Participants in the Solicitation

Qumu Corporation and its directors, executive officers and other members of its management may be deemed to be soliciting proxies from the Company’s shareholders in favor of the asset sale transaction with Equus Holdings, Inc. and Redwood Acquisition, Inc. Investors and shareholders may obtain more detailed information regarding the direct and indirect interests in the transaction of persons who may, under the rules of the SEC, be considered participants in the solicitation of Qumu’s shareholders in connection with the transaction by reading the preliminary and definitive proxy statements regarding the transaction, which will be filed with the SEC. Information about the Company’s directors and executive officers may be found in the Company’s definitive proxy statement for its 2014 Annual Meeting of Shareholders filed with the SEC on April 15, 2014. These documents are available free of charge once available at the SEC’s web site at www.sec.gov or by directing a request to the Company as described above.