Chyron announced that it has signed a definitive agreement to acquire Stockholm-based Hego Group, a provider of graphics and data visualization solutions for TV and sports, in an all-stock deal.
The company’s referred to the deal as a merger in its press release, and announced that it will rename the combined company ChyronHego.
Hego Group chairman and CEO Johan Apel, will become president and COO of ChyronHego, and will also get a seat on the company’s board of directors. . Michael Wellesley-Wesley, president and CEO of Chyron, will remain as ChyronHego CEO.
All Stock Deal with Three-Year Earn-Out
Under the terms of the deal, Chyron will issue a number of shares of Chyron common stock which will represent 40% of its aggregate shares of common stock outstanding, including certain outstanding options, after the closing, in exchange for all of Hego’s outstanding capital stock.
The deal also includes an earn-out provision whereby Hego shareholders will be entitled to receive additional shares of Chyron stock (up to a total of 50% of the aggregate shares outstanding) for achievement of certain revenue milestones during 2013, 2014 and/or 2015.
Combined Company Financials
Hego, which has about 100 employees, had revenue of $14.8m in 2012, up 37 percent from 2011. Hego posted an operating profit of $1.6m in 2012.
This implies the total 2012 performance of the enlarged company was revenue of approximately $45m, and an operating loss of $2.1m.
“The merger of Chyron and Hego brings together two pioneering companies to create a global leader in broadcast graphics creation, playout, and real-time data visualization. This is a truly transformative transaction for Chyron,” said Michael Wellesley-Wesley. “By combining the teams and resources of Chyron and Hego, we will deliver to our customers a highly diverse and compelling broadcast graphics capability.”
“With this merger, we are looking forward to integrating Hego and Chyron solutions and working together to innovate new products and services,” stated Johan Apel, chairman and CEO of Hego Group. “Our objective is to develop powerful, easy-to-use solutions for sports, news and live TV. Hego has grown quickly over the last few years but this merger takes us to a whole new level, especially in North and South America where our offerings have been generating significant interest. We’re excited about this combined company and I believe that our customers are the real beneficiaries.”
Press Release: Chyron to Acquire Hego Group
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