Broadcast Vendor M&A: Telestream Acquired by Genstar Capital

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jan 07 2015

Telestream_Logo (new in 2014)

Transcoding and workflow vendor Telestream announced that it has entered into a definitive agreement to be acquired by Genstar Capital, a San Francisco-based private equity firm that manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the financial services, software, industrial technology, and healthcare industries.

The seller was Thoma Bravo, the private equity firm that purchased Telestream in 2011 for an undisclosed amount.

Terms were not disclosed, but Telestream said that “the transaction recognizes the company’s significant growth and positions it well for the next phase of expansion.”

The deal comes just four months after Telestream issued a statement saying that its transcoding and workflow revenue increased by 40 percent in 2013 versus 2012, and had achieved profitable growth for the last 14 years. At that time, company CEO Dan Castles attributed the company’s impressive track-record of growth to both innovation and management stability.

Telestream will continue to operate as an independent entity, and its existing management team will continue with the company in their current roles.

Thoma Bravo said in a statement that since it bought the company, Telestream saw “incredible growth on several fronts,” thanks to new product launches, strategic M&A, and expanding its executive and sales team to drive further growth. “Thoma Bravo worked in partnership with management over our three year ownership period to invest in the business, make acquisitions and accelerate the company’s growth,” said Holden Spaht, a managing partner at Thoma Bravo. “The company today is a clear leader in the digital video space with the deepest set of products and services in the market.”

Castles issued an upbeat statement about the deal, and telegraphed he believes that under Genstar, Telestream might continue to use strategic M&A and become an industry consolidator.

“Genstar’s mid-market focus and deep expertise in the software industry will enable Telestream to further accelerate our growth,” said Castles. “Over the past several years, Telestream has experienced its most significant growth. We look forward to our new partnership with Genstar as we increase our investment in existing products, accelerate our reach into new customer verticals and fuel our next phase of development through additional M&A activity. Our product portfolio and business models are well suited for the Genstar environment.”

“Genstar has been following Telestream closely and this acquisition is consistent with our strategy of investing in vertical market software companies,” said Eli Weiss, a Managing Director of Genstar. Telestream is a leader in its market and has posted profitable growth since its founding. As even more content is generated and viewed on more devices, we believe the company will continue its demonstrated growth trajectory, and we will support Telestream’s experienced and successful management team to expand organic growth via new product releases and pursue add-on acquisitions.”

The deal is expected to close in mid-January 2015.

 

Genstar’s acquisition of Telestream is the latest in a series of deals related to online video and transcoding.

As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

 

  • In April 2014, Imagine Communications acquired Digital Rapids for an undisclosed amount

 

  • In April 2014, Dalet acquired Amberfin for an undisclosed amount

 

  • In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost-effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”

 

  • In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012

 

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

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Related Content:

Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Broadcast Vendor M&A: Telestream Buys Captioning Provider CPC

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

Elemental Technologies Says Revenue Increased by 50 Percent in 2013

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

Harmonic Moves Transcoding Technology to the Cloud, Launches AWS-Based Service

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Broadcast Vendor M&A: EVS Acquires All Shares of SVS GmbH and Dyvi Live SA

Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Jan 07 2015

EVS_Logo (2013)

EVS announced that it now owns 100% of Scalable Video System GmbH (SVS) and Dyvi Live SA, two related firms that produce and market IP-based production switchers.

EVS, which purchased 25% of SVS in May 2013, has now paid €1m in cash to acquire the remaining 75% it did not already own. The deal also includes an “a possible future earn out based on the performance over the 2015-2020 period.” However, the terms of the earn-out provision were not specified.

Separately, EVS also paid €100,000 to acquire the remaining 5% it did not own in Brussels-based Dyvi Live SA, which distributes SVS products under the DYVI name

In its Q3 2014 financial results, EVS said the principal reason it had invested in SVS was to give the company access to SVS’s “promising technology.” The company went on to describe it’s financial relationship with SVS and DIVT, saying: “Notwithstanding that EVS only holds 25.1% of the shares outstanding as at September 30, 2014, the Group considers to have the control of SVS because it has the power on the business decisions and it controls totally the outflow of the company through the exclusive distribution agreement between a new fully owned subsidiary (DYVI LIVE, fully consolidated in the EVS accounts) and SVS. Moreover, EVS finances the future expenses occurring for the SVS development. Consequently, SVS is fully consolidated and non-controlling interests are accounted for (74.9%). In 9M14, these two entities have contributed EUR 0.1 million to EVS revenues, EUR -2.7 million to EBIT and EUR -1.7 million to net group profit, including non-controlling interest. At September 30, 2014, goodwill amounted to EUR 1.1 million.”

In announcing it has acquired the remainder of the outstanding shares in both SVS and DIVY, EVS said “these moves will enable EVS to manage that promising product line in a more efficient and holistic way.”

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Elemental Technologies Closes $14.5 Million Series D Funding Round, Adds Telstra and Sky as Investors

Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Dec 22 2014

Elemental Technologies announced that it has closed a $15m series D funding round, led by led by Australian telco giant, Telstra, who in August 2014 acquired online video platform provider Ooyala for $360m.

The company says it will use the funds to “accelerate worldwide growth and expand its suite of software-defined video (SDV) solutions to support the whole of the IP video delivery chain.”

Joining Telstra in the series D funding is leading European pay TV and broadband provider BSkyB, along with existing Elemental investors, General Catalyst Partners, Norwest Venture Partners and Voyager Capital; also participated in the funding round. Missing from this list is Disney-backed Steamboat ventures, which participated in Elemental’s previous investment rounds.

The deal brings the total amount of funding raised by Elemental to just under $45m. In May 2012 Elemental announced it closed a $13m fundraising round led by Norwest Venture Partners (NVP).   In 2010, the company closed a $7.5 funding round, led by General Catalyst, Voyager Capital and Steamboat Ventures.

Elemental did not provide details on the company’s valuation following the deal, what percentage of the company is now owned by Telstra and Sky, or whether the company’s existing investors have maintained their same percentage ownership after the latest deal.

However, a press release from Sky, indicates the pay TV platform has invested $4m into the company though its “ongoing program of investing in innovative startups” that to date include cross-platform network Whistle Sports; online video aggregator Pluto.TV, and US ad tech firm Sharethrough.

According to published reports, Elemental had 142 employees and revenue of $32.3m for the full year 2013, and had grown top-line revenue by 887% over the previous three years.  The company says its products have been adopted by more than 600 customers in more than 55 countries.

Although there are no financial metrics available for 2014, during an April 2014 panel of vendor CEOs that I moderated as part of Shifting Media Economics: Impact on Strategy, Finance, and Technology, which is co-produced by Devoncroft and the NAB Show, Elemental founder and CEO Sam Blackman told an audience of nearly 400 industry executives that he expected his company to achieve growth of more than 50% this year.

The fact that very large end-users are investing in Elemental is an interesting development.

According to a statement, Telstra has started to roll out 4G LTE services on new 700MHz spectrum to deliver ultra-fast mobile data speeds, and the telco plans to “leverage the entire Elemental product line, with a specific focus on Elemental Delta for its next-generation content delivery services.”

“With its software-defined video processing and delivery solutions, Elemental is at the forefront of video delivery and the evolution of content monetization. Our investment in Elemental will enable Telstra to create value for our global media customers,” said Mark Sherman, Global Enterprise and Services Managing Director, Ventures, for Telstra. “Elemental’s unique offer provides the flexibility and scalability to ensure a great customer experience despite high network traffic demands.”

Sky says that is investment in Elemental “will give the company valuable access to an entertainment company that is at the forefront of multi-platform, multi-device video – delivering OTT content at scale to millions of customers.”

Emma Lloyd, Sky’s Director of Corporate Business Development and Startup investments, said “Internet-delivered video is fundamental to Sky’s business and will continue to grow in importance as more and more customers access content across multiple screens and devices.  By investing in Elemental, we not only strengthen our existing commercial partnership, but we have the opportunity to share perspectives and insight into how the combination of new technologies and changing customer demands will shape the video landscape of the future.”

Elemental’s take on the deal was outlined by Blackman in a blog post published today, which says:

“As with any financing round, the timing and the deal need to be right. But fundamentally, it boils down to a shared belief that we can all evolve faster if we’re strategically aligned around a core goal of transforming the media landscape. In many ways, 2015 will mark an inflection point for the video industry as content creators and aggregators deliver ever-more innovative multiscreen services. Furthermore, as the number of video-capable IP devices heads to 15 billion according to Ericsson, next-generation software-defined video infrastructure is required to support gigascale video distribution

With an industry inflection point upon us, this alignment among market leaders will speed the transition to software-defined video architectures. For Telstra, Elemental’s video solutions are fundamental to its next-generation network strategy, which it is rapidly evolving to software, virtualization and cloud-based workflows. As our shared news today indicates, Telstra will use Elemental products across its large portfolio of media properties. For Sky, Elemental solutions support its current multiscreen OTT Sky Go properties, and as SDV architectures continue to mature, we believe there will be additional opportunities to collaborate in the future.

Together, Telstra, Sky and Elemental can further the progress towards a shared vision of software-defined video solutions that are highly scalable, flexible and upgradable and which lower the barriers to bringing content to any device.”

 

Today’s Elemental announcement is the latest in a series of deals related to online video and transcoding. As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

  • In April 2014, Imagine Communications acquired Digital Rapids for an undisclosed amount

 

  • In April 2014, Dalet acquired Amberfin for an undisclosed amount

 

  • In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost-effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”

 

  • In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012

 

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

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Related Content:

Press Release: Elemental Fuels Global Ambitions with $14.5M in Telstra-led Financing

Sky Press Release: Sky Invests in Multiscreen Video Leader Elemental

Telstra Buys Online Video Platform Ooyala for $360 Million Equity Value

Ooyala Receives $43 Million Investment From Telstra To Accelerate Adoption of Its Market-leading Video Analytics

Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Elemental Technologies Says Revenue Increased by 50 Percent in 2013

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

Harmonic Moves Transcoding Technology to the Cloud, Launches AWS-Based Service

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Vitec Group Buys SmallHD for up to $30 Million in Cash

Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Dec 11 2014

The Vitec Group, which owns more than a dozen brands in the broadcast industry, announced that it has acquired the business of SmallHD for up to $30m.

Based in North Carolina, SmallHD provides high-definition on-camera field monitors used by broadcasters and independent content creators, so its products are complementary with Vitec wide range of camera support and accessory brands, including Vinten, Vinten Radamec, Sachler, OConnor, Andon/Bauer, Autoscript, Camera Corps, Teradek, The Camera Store, Haigh-Farr, Litepanels, and Petrol Bags.

Typical of a Vitec M&A transaction, the deal includes an up-front cash payment and a large potential earn-out for SmallHD managers if the company meets certain performance targets after being acquired.

Specifically, Vitec will pay an initial cash consideration of $4.6m on a debt/cash free basis, and up to a further $25.4m, payable in cash, dependent on SmallHD’s performance over a two and a half year period to 30 June 2017.  To achieve the maximum payment, SmallHD must deliver an annualized EBITDA run-rate of $9m in 2017.

For the financial year-ended 31 December 2013, SmallHD had sales of $8.1m, and generated an unaudited adjusted profit before tax of $300,000. At the end of 2013 SmallHD had gross assets of $2.5 million.

Vitec says that SmallHD has grown during 2014 and is investing in new product platforms, and that the company anticipates “both healthy sales and profit growth going forward.”

According to Vitec, the SmallHD deal is in line with its “strategy of offering a growing range of high technology solutions to the Group’s established global customer base. It complements Vitec’s existing video activities, including Teradek, which serves a similar customer base. There are opportunities to sell SmallHD’s products through Vitec’s global sales and distributor network. SmallHD is being acquired from its current management, who will remain with the business, and it will operate as a business unit within the Videocom Division.”

The consideration will be financed out of Vitec’s existing banking facilities. The Board expects the acquisition to be earnings enhancing in the year ending 31 December 2015.

“I am delighted to welcome the SmallHD team to Vitec, said Vitec CEO Stephen Bird. “This high technology business complements our market-leading broadcast activities and is in line with our strategy of enabling our customers to capture and share exceptional images. There is an increasing demand for SmallHD’s products from the growing community of independent content creators who use this world leading technology. The business has great prospects and we anticipate that it will generate a good return on our investment.”

The purchase of SmallHD is similar to the 2013 transaction when Vitec acquired Teradek for up to $30m.  For the Teradek deal, Vitec paid $14.9m in cash and up to a further $15.5m dependent on Teradek achieving against annual EBIT targets over the three-year period to 31 December 2015.

The Teradek deal appears to have been a success for Vitec.  Since the time of the Teradek acquisition, subsequent Vitec financial filings indicate that the company has indeed been making earn-out payments to Teradek shareholders over the past year.  The addition of Teradek, which is active in the fast growing bonded cellular and wireless communication links segment, forced the company to re-think it’s overall portfolio, and ultimately to divest its IMT Wireless Communications and Microwave Business in mid-2014.

 

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Related Content:

Vitec Group Announces Intention to Divest IMT Wireless Communications and Microwave Business

Vitec Group 1H 2014 Results: Videocom Down 1%, Bexel up 39.9%

Broadcast Vendor M&A: Vitec Buys Teradek for $15 Million

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Evertz Revenue Increases 2 Percent in Q2 FY 2015, Misses Analyst Estimates

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Dec 04 2014

Evertz announced revenue for its second fiscal quarter of 2015 (ending October 31, 2014) of C$82.9 million, an increase of 2% versus the same quarter in 2014 and down 15% from the previous quarter.

Net earnings for the quarter were C$14.3 million ($0.19 earnings per share), a decline of approximately 8% against the 2014 second quarter performance and down 27% versus the preceding quarter.  It is important to note the revenue result from the first quarter of 2015 was the highest in Evertz’s corporate history.

The results for the quarter were lower than the consensus estimate of equity analysts, who were expecting revenue of C$88m and earnings of C$0.23 per share.

The revenue miss was principally attributable to the softness in international markets.

Revenue in the US/Canada region was C$45.4m, up 19% versus the same period a year ago, and up 18.2% versus the previous quarter. US/Canada sales were 55% of total revenue during the quarter, up from 47% of revenue during the same period a year ago, and 57% of revenue last quarter.

International revenue was C$37.5m, representing a 13% decline versus the previous year’s result and a slight decrease of 11.8% when compared to the previous quarter. International sales were 45% of total revenue, down from 53% last year and 43% last quarter.

Gross margins in the quarter were 56.2%, down slightly from 57.4% last year and up from 57.0% last quarter. This result remained in Evertz’s previously communicated target gross margin range of 56% to 60%.

R&D expenses in the second quarter were C$15.1m, an increase of 3% versus the same period last year, and down 4.5% versus the previous quarter.  R&D expenses were approximately 18.2% of revenue in the quarter, higher on a percentage basis of revenue than last year (17.9%) and last quarter (13.6%) due to higher revenue.

Selling and administrative expenses for the quarter were C$15.1m, an increase of 10% versus last year, and an increase of 12.6% versus the previous quarter. Selling and administrative expenses represented approximately 18.2% of revenue in the quarter versus 16.8% of revenue during the same period last year, and 15.5% of revenue last quarter.

One interesting non-financial note from the quarter was the disclosure that Evertz has signed deals with more than thirty customers for its IP routing products, including its new 46 TB/s EXE router.

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: ChyronHego to be Taken Private by Vector Capital in $114 Million Deal

Analysis, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Nov 17 2014

Broadcast graphics specialist ChyronHego announced that it has entered into a definitive agreement with Vector Capital, under which an affiliate of Vector will acquire all of the outstanding shares of ChyronHego common stock for $2.82 per share in cash.

San Francisco-based Vector Capital is a private equity firm with experience in the digital media sector. Recent portfolio investments include Corel and Technicolor. To fund the ChyronHego deal, Vector has secured committed financing consisting of a combination of equity and debt.

This is the second recent take-private transaction of a broadcast graphics provider. Earlier this month. Vizrt announced that it will be taken private by Nordic Capital in a $374m all-cash deal.

The $2.82 per share purchase price represents a premium of approximately 18% over the company’s average closing share price for the six months ending on November 14, 2014, and a 4% premium over the company’s closing share price on November 14, 2014, the last day of trading before the announcement.

Based on the total number of shares outstanding in ChyronHego, the deal equates to an equity value of approximately $114m. After backing out the cash on the company’s most recently published financial statements, this represents an enterprise value of approximately $108m.  On a valuation multiple basis, this is approximately 1.8x trailing 12 month’s revenue.

According to a shareholder FAQ, ChyronHego’s management team will stay the same after the transaction closes. Johan Apel will continue as CEO, and Soren Kjellin will continue as CTO.

The contractual details of the ChyronHego – Vector Capital agreement are complex and worth a longer discussion. We are preparing an analysis of the deal, and we will post this later this week.

A very brief synopsis of certain deal points follow:

  • Technically, the deal is a merger rather than an acquisition. ChyronHego is being merged into an entity controlled by Vector Capital, in order to create a new corporate entity, which will also be owned and controlled by Vector Capital.

 

  • All major shareholders on the ChyronHego management team have agreed to re-invest approximately 50% of their holdings in ChyronHego into the new corporate entity, for which they will receive approximately 31% of the equity in the new entity

 

  • Interestingly the merger agreement includes a “go shop” provision whereby ChyronHego has seven weeks to find a buyer who will offer a higher price than Vector Capital’s offer of $2.82 per share. Given Vizrt’s valuation in the Nordic Capital deal, and the fact that shares of ChyronHego have traded above $3.00 several times during the past year, it is possible that ChyronHego will be able to find a better offer. However, the “go shop” provision includes termination fees that will triggered under specified circumstances such as the acceptance of a superior offer. The company says it does not intend to disclose developments with respect to the solicitation process unless and until a decision has been made in respect to any potential superior proposal. 

 

The transaction is subject to customary closing conditions and most notably the approval by holders of two-thirds of ChyronHego’s outstanding shares and the approval by holders of a majority of shares held by current ChyronHego’s stockholders who will not become stockholders in the going-forward entity.  The Company expects the transaction to close in the first quarter of fiscal 2015.

The company said that its  board of directors and a special committee of the board composed entirely of independent directors have unanimously approved the deal, and have recommend that ChyronHego’s stockholders approve the transaction

“We are very happy to announce this partnership with Vector Capital, an established global technology oriented private equity firm that is focused on building long-term value. Our management is convinced that this is the right opportunity at the right time for ChyronHego’s customers, employees and stockholders,” said Apel.

In the third quarter of 2014, ChyronHego posted a net loss of $2.6m on revenue of $14. During the first nine months of 2014, ChryronHego posted a net loss of $2.8m on revenue of $43.3m.

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Related Content:

ChyronHego Investor FAQ and Introduction to Vector Capital

Agreement and Plan of Merger: ChyronHego Corporation, Vector CH Holdings (Cayman), L.P., And CH Merger Sub, Inc.

ChyronHego SEC Filing: Entry into a Material Definitive Agreement with Vector Capital

ChyronHego One Year Stock Price Chart

Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Top Broadcasters and Content Owners to Debate Key Trends Driving Future Technology Strategy at CCW Conference

broadcast industry technology trends, broadcast industry trends, Conference Sessions, market research | Posted by Joe Zaller
Nov 11 2014

If you are interested in better understanding how the dynamic changes in the media industry may impact future technology purchasing and deployment strategies at top broadcasters and content owners, you won’t want to miss the panel discussion that I will be moderating at the CCW / SATCON conference.

The session is called “Key Trends Driving Media Technology Investments,” and it happening on Thursday November 13th at 11:30 a.m. in Room 1A14 of the Javits Convention Center in New York.

Discussion topics will include strategic drivers of broadcast technology spending, key customer investment areas, new technology deployment trends, and the most significant industry trends impacting end-user purchasing decisions.

An outstanding panel of four senior M&E technology executives will offer informed perspectives on the most significant trends in the industry, and how their technology purchase decisions are being driven by these shifts in the market.

Confirmed participants include:

  • Richard Friedel, Executive Vice President & General Manager, FOX Networks Engineering & Operations

 

  • Fred Mattocks, GM, English Services, Media Operations & Technology; Chair, Technology Strategy Board, CBC

 

  • Delbert Parks III, SVP and Chief Technology Officer, Sinclair Broadcast Group

 

  • Diane Tryneski, Executive Vice President, Media & Production Operations, HBO Enterprises

 

In addition, the audience will benefit from a summary of key data derived from a variety of broadcast market intelligence projects including Devoncroft’s 2014 Big Broadcast Survey (BBS), the industry’s definitive demand-side market report.

Please note that this event is part of the paid conference at CCW. You can register for the CCW Conference here.

This should be a great session. I hope to see you there.

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Related Content:

CCW Session Description — Key Trends Driving Media Technology Investments

2014 CCW Conference Registration

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Nov 10 2014

Broadcast graphics and MAM specialist Vizrt announced that it will be taken private in an all-cash deal that values the company at $374m.

The buyer is Nordic Capital, a leading Nordic PE firm with four active funds with over EUR 11 billion in total committed capital. Under the terms of the deal Vizrt will be merged with 24 October Holding AG, an entity indirectly controlled by Nordic Capital Fund VIII, and NOR Merger Sub Ltd.

The transaction values Vizrt at a 32% premium to the company’s closing share price November 7, 2014, the last trading day prior to the announcement of the deal, and a 35% premium to the company’s six months volume weighted average share price of the for the period ending on November 7, 2014.

“I and the management team are excited about the opportunities we all believe we have ahead of us,” said Vizrt CEO Martin Burkhalter. “Nordic Capital is very committed to support our growth strategy going forward. Being a privately owned company opens up for accelerated growth opportunities through, amongst others, future acquisitions that support our long-term strategy. The discussion management has held with Nordic Capital over the last few months gives us the necessary confidence that Nordic Capital will fully back-up our continuous efforts to stay ahead of the game by further strengthening our innovative capabilities.”

The deal is expected to close on or around January 31, 2015, provided all conditions for completion have been fulfilled.

Completion of the transaction is subject to the approval by a Shareholders Meeting of Vizrt by simple majority which is expected to be held on or about December 18 2014. Shareholders representing 51.5% of the total share capital of Vizrt have declared that they will vote in favor of the deal

“Our Board has undertaken a careful review of the terms and conditions of the Merger and is unanimous in its recommendation. We consider the cash based offer as fair and in the best interest of our shareholders. We believe that Nordic Capital, with its breadth of expertise and proven track record of developing companies, will be a strong owner of Vizrt.” stated Dag J. Opedal, Chairman of the Board of Directors of Vizrt.

The Company and Nordic Capital shall cooperate for a delisting of the Company’s shares from the Oslo Stock Exchange as soon as possible after the Merger becomes effective.

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Related Content:

Press Release: Nordic Capital to pay NOK 37 in cash per VIZRT Ltd. Share

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© Devoncroft Partners 2009 – 2014. All rights reserved.

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EVS Parts Ways with CEO Joop Janssen Over Differing Opinions on Strategic Implementation

broadcast technology market research | Posted by Joe Zaller
Oct 13 2014

Production and playout video server specialist EVS announced that CEO Joop Janssen is leaving the company, effective as of October 14, 2014.

Jassen remains available to EVS as an advisor, allowing for a smooth transition.

The decision was made during a meeting on October 10, 2014, during which the company’s board of directors and Janssen mutually agreed to end the term of the office and duties of Janssen as managing director and CEO of EVS.

According to EVS, Jassen and the company are parting ways “due to differences in view about the implementation of the company’s long term strategy.”

EVS says its board of directors has launched the search for a new CEO.

In the interim, Muriel De Lathouwer, currently a member of the Board of Directors of EVS, chairing the Strategy Committee, has been appointed as the President of the Executive Committee. “I have great confidence in Muriel De Lathouwer’s capacities to perform this task, in close cooperation with the management team in place,” Pierre Rion added.

Jassen, who was named CEO of EVS in 2012, unveiled a new corporate strategy in early 2013 that focused EVS on four key markets: Sports, Entertainment, News and Media.  At that time, Janssen said the new strategy will “enable us to better deliver our investments in R&D and product innovation, help drive the expansion of our sales network, and continue to improve our user training and customer support and bring even better products to the market faster.”

“The entire Board of Directors would like to thank Joop Janssen for his work during the past two years. Under his leadership, the structure of EVS has been strengthened and professionalized, enabling the company to further grow in its four key markets: Sports, Entertainment, News and Media,” said Pierre Rion, Chairman of the Board of Directors of EVS.

Prior to joining EVS, Jassen was the Chief Executive of the Videocom division of the Vitec Group. During his nine years with Vitec Videocom he was the architect behind its significant profitable growth and brand expansion. Prior to that he was VP and General Manager of Phillips Broadcast (formerly BTS) North America where he was instrumental in the successful divestment to Thomson Multimedia and the subsequent acquisition of the Grass Valley Group. He has held senior and executive management positions including those at Philips Electronics Digital Networks in France and Philips Business Electronics in the Netherlands.

EVS says its board of directors has launched the search for a new CEO.

In the interim, Muriel De Lathouwer, currently a member of the Board of Directors of EVS, chairing the Strategy Committee, has been appointed as the President of the Executive Committee. “I have great confidence in Muriel De Lathouwer’s capacities to perform this task, in close cooperation with the management team in place,” Pierre Rion added.

During her career, Muriel De Lathouwer worked for Accenture, was Associate Principal at McKinsey and a member of the Executive Committee at Base (KPN). She is an Engineer from ULB (University of Brussels) and holds an MBA from INSEAD.

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Related Content:

Press Release: EVS Announces Departure of Joop Janssen, Managing Director and CEO

EVS Posts Record Revenue in 2012, Unveils New Strategy and Vision for Future

Press Release: EVS Broadcast Equipment Appoints Joop Janssen as CEO

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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There’s a Lot of Talk About Cloud Technology in Media & Entertainment, But What’s Actually Being Deployed?

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Sep 30 2014

This is the second in a series of articles about some of the findings from Devoncroft’s 2014 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2014 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

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There’s no question that cloud technology is a hot topic in the media and entertainment industry.

Indeed, it seems that these days you can’t read anything about industry technology trends (in broadcast or any other industry for that matter), NAB or IBC Show wrap-up piece, and/or manufacturer white paper, without coming across some mention of “the cloud.”

We see this in our own research too.

In the 2014 Devoncroft BBS Broadcast Industry Global Trend Index, “Cloud Services / Cloud Technology” was ranked the #5 in terms of the industry trends that are most important commercially to broadcast technology end-users world-wide.

This indicates that while there continues to be skepticism (not to mention security concerns) about cloud technology, the acceptance of (or at least the willingness to consider) cloud technology and services increased rapidly in 2014.

For example, data from the Devoncroft 2014 Big Broadcast Survey (BBS) Global Market Report shows that Cloud Services / Cloud Technology had one of the largest year-over-year percentage increases in terms of broadcast technology end-user project spending, when compared to wide variety of other capital projects.

So while there is still a great deal of hype about cloud in media and broadcast, there also appears to be genuine interest on the part of buyers to actually deploy technology in the cloud.

But what are buyers of broadcast technology actually planning to deploy in the cloud, and do they actually trust cloud technology?

To find out we asked participants in our 2014 Big Broadcast Survey (BBS) what they have already deployed, or plan to deploy in the cloud over the next 2-3 years.

Since we typically get about 10,000 people in 100+ countries participate in the BBS (thanks to all who participated, we really appreciate the time you spent sharing your feedback and opinions), we’ve gathered a lot of data on this and many other topics.

As simple example is shown in the “word cloud” below, which provides a graphical representation of how the many thousands of broadcast technology end-users who participated in the 2014 BBS responded to this simple question:  “what have already deployed in the cloud, or plan to deploy in the cloud over the next 2-3 years?”

Please note that the chart shown below is derived from “free-text” answers received in 10 separate languages from the many thousands of 2014 BBS respondents, so there is a lot going on in this diagram.

The free-text responses from 2014 BBS participants were used to create the “word cloud” shown below, whereby the font size of each term was made larger based on how often it was mentioned by 2014 BBS respondents (the colors do not mean anything, but they are pretty).

 

 

2014 BBS -- Likely Cloud Deployments in Broadcast Over Next 2-3 Years (small)

 

 

Although the data in this chart just scratches the surface in terms of the overall scope of opinions captured in the 2014 BBS, it’s a useful illustration of what broadcast technology buyers are thinking about actually deploying in the cloud.

It’s probably not surprising to most readers that “storage” was the use-case mentioned most often by 2014 BBS participants. The combination of low-cost digital acquisition technology, ever-increasing shooting ratios, and the desire to monetize content assets over multiple distribution platforms is driving the need for more storage (both on and off-premise). As one vendor told me recently, “the one thing I can tell you about content archives is that they are not getting smaller every day.”

More interesting, is that when you compare the above diagram with how last year’s BBS respondents answered this same question, is appears that there is more consensus beginning to emerge about media use-cases for cloud technology beyond the obvious.

In previous years, BBS respondents also reported that storage was one of the most important things they planned to deploy in the cloud.  However, after storage, the next most important response was typically “I Don’t Know.”

While there are still some BBS respondents who remain unsure about their cloud deployment plans, there are now many fewer, and it appears that in 2014 broadcast technology end-users are more serious than ever about deploying cloud technology.

In 2014, commonly cited use-cases for media and entertainment cloud deployments include streaming, archiving, editing, transcoding, and content distribution.

It’s also interesting to see specific vendors (including Adobe, Amazon AWS, Apple, and Dropbox) being frequently mentioned as being “the thing” that will be deployed in the cloud. This may indicate that technology buyers are looking to these vendors to provide them anything from specific cloud-based tools, to a complete end-to-end cloud solution.

Leaving aside specific technologies and vendors, sometimes it’s more useful to “zoom out to a 10,000 foot view” of the potential deployments of cloud technology in the professional media and entertainment industry.

Considered from this perspective, we believe that more significant than the technologies and vendors mentioned in the above chart, is the fact that cloud technology is being seen as increasingly important by major broadcasters and media companies.

There is plenty of evidence to support this premise, including several recently announced end-user initiatives and many discussions about creating a “virtualized broadcast infrastructure” in order to drive greater efficiencies. If this is the case, there are significant implications for all involved in the media supply chain, including both vendors and end-users.

Much more information about the attitudes of broadcast technology buyers towards cloud technology, and what broadcast technology buyers are likely to actually deploy in the cloud is available from Devoncroft Partners as part of our 2014 BBS Global Market Report. This report also includes information about what technologies end-users are planning to deploy in the cloud, when they are planning to deploy them, and what efficiencies they hope to achieve by doing so.

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Related Content:

2014 Big Broadcast Survey (BBS) Reports Now Available

2014 Broadcast Industry Market Research from Devoncroft Partners

Devoncroft Research: IBC 2014: Observations and Analysis of Broadcast and Media Technology Industry (free 52 page report, registration required)

2014 BBS: Ranking the Most Important Trends in the Broadcast Industry, Based on Commercial Importance to End-Users

2013 BBS: With All the Hype About Cloud, What Are Media Organizations Actually Going to Deploy?

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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