Broadcast Vendor M&A: Net Insight Acquires ScheduALL in $14 Million All-Cash Deal

Posted by Joe Zaller
Sep 04 2015

Net Insight announced it has acquired resource scheduling software provider ScheduALL in a $14m all-cash deal.logo-net-insight

The company says the deal will strengthen Net Insight’s “market position in media service and workflow orchestration.” ScheduAll_Logo

Media and workflow orchestration has become an increasingly important (and crowded) area over the past two years, with multiple vendors announcing new initiatives in this area.

This is Net Insight’s first acquisition in more than a decade.  At current exchange rates, the acquisition will consume approximately 40% of Net Insight’s cash balance as of the end of Q2 2015.

For the 2014 financial year, ScheduALL had revenue of $10.6m, approximately 60% of which was recurring. ScheduALL made a profit of $700,000 in 2014.

The implied multiples of the transaction are 1.3x 2014 revenue and 20x 2014 net profit.  In comparison, Net Insight trades in the public markets (as of 9/2) at 1.6x revenue and 25x earnings.  On both measures, the acquisition is accretive.

To put the acquisition’s impact in proper context, consider Net Insight has grown revenues since 2010 by approximately $10 million USD, which is roughly the acquired revenue from ScheduALL.

“This is a perfect match for Net Insight,” said company CEO Fredrik Tumegard. “We are not only executing on our strategy, we are also taking a giant leap towards our vision of creating a unified and global media market place for both service providers and media companies.”

Half of ScheduALL’s revenue in 2014 was from North America.  This will provide greater exposure to the North American market for Net Insight, which generated 44% of its revenue from the Americas (including South America) in fiscal 2014.

Adding to the financial benefits are the straightforward cost synergies from combining duplicative sales and marketing activities including trade shows.  No guidance was provided in the press release on the potential for cost synergies.

.

.

Related Content:

Press Release:  Net Insight Acquires US Software Company ScheduAll

.

.

© Devoncroft Partners 2009-2015. All Rights Reserved.

.

.

Comments are closed.

%d bloggers like this: