Posts Tagged ‘broadcast market investment trends’

Broadcast Vendor M&A: Vizrt Buys Remaining Shares of LiberoVision

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 28 2013

Vizrt announced that it has closed the third and final tranche of the acquisition of virtual sports enhancement technology provider LiberoVision.  Following the closing of the deal, Vizrt will own 100% of the outstanding share capital of LiberoVision.

The purchase price for this transaction was $2.4m, comprised 80% cash ($1.9m) and 20% Vizrt stock (135,908 shares), and was based on a previously announced earn-out formula whereby Vizrt would  pay  20% of ten times LiberoVision 2012 EBIT.

In total, Vizrt paid $10.4m for LiberoVision.

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Related Content:

Press Release: Vizrt closes third tranche of LiberoVision AG acquisition

Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

More Broadcast Vendor M&A: Vizrt Acquires Additional 20 Percent of LiberoVision

More Broadcast Vendor M&A: Vizrt Acquires Sports Replay Provider LiberoVision AG

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More Broadcast Vendor M&A: Vitec Group Buys Photo Lighting and Accessories Vendor Lastolite

broadcast technology market research, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 08 2011

Vitec announced that it has acquired the entire share capital of Henry Holdings Limited (“HHL”), for a cash consideration of up to £9.75m. HHL is the owner of Lastolite Limited in the UK (“Lastolite”).

Based in Coalville, Leicestershire, Lastolite employs approximately 80 people and is a leading designer, manufacturer and supplier of lighting control accessories and backgrounds for the photo, video and cinema industry. Established in 1986, Lastolite produces highly innovative products for the keen amateur and professional photographer. It is also the owner of the Colorama brand of paper backgrounds.

The Acquisition will complement Vitec’s existing range of Manfrotto lighting supports and LED lights with lighting control accessories, thereby strengthening the Company’s position in this part of the accessories market.

Lastolite will operate as a standalone business within Vitec’s Imaging and Staging Division. Lastolite’s existing senior management, including the Managing Director, Sean Henry, will be retained by the business reporting to the Divisional Chief Executive, Francesco Bernardi.

For the financial year ended 31 December 2010, Lastolite generated audited sales of £8m (of which £1.5m were to Vitec Group entities) and adjusted profit before tax of £1.4m. As at 31 December 2010, Lastolite had gross assets of £3.5m.

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Related Content:

You can read the full press Vitec release here.

Vitec Announces 2010 Results: VideoCom Revenue Falls, Services Post Strong Increase

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More Broadcast Vendor M&A: EVS Sells XDC CineStore Digital Cinema Technology to Barco

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 04 2011

Less than two weeks after Reuters reported that Barco is “seriously considering” new acquisitions to boost its growth, the Belgium-based projection vendor announced that it has acquired the CineStore activities of cinema solutions provider XDC.

Broadcast production and playout server vendor EVS is the majority shareholder in XDC.  

Terms of the deal were not disclosed.

This is perhaps not a surprising move for Barco, which recently announced strong financial results, driven in large part by the global expansion of digital cinema.  The company appears to be seeking to leverage its recent D-Cinema projection sales success into a more integrated provider of complete D-Cinema solutions.

Indeed, Barco says the acquisition will help it “move up in the value chain from digital projection supplier to provider of total cinema visualization solutions,” and that the CineStore team brings profound software knowhow and in-depth market knowledge of the digital cinema business.

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XDC’s CineStore products include:

  • Solo G3: a hybrid digital cinema server offering both JPEG 2000 and MPEG-2 play-back capabilities. It is used as Screen Management System (SMS). 

 

  • Audi: a system for digital to analogue conversion, external analogue audio source inputs and high quality signal isolation.

 

  • Plaza: a hardware and software suite that enables to fully manage a cinema multiplex from a single point.

 

Barco’s VP of Digital Cinema Wim Buyens said that adding CineStore’s skills and experience to Barco’s business will allow it to strengthen its market position.  However he added that the company is not seeking to become an integrator (and compete with its existing distribution channel). “We stand by our strategy not to be a VPF integrator. Instead, we will remain focused on supplying visualization technologies and products for the professional digital cinema community,” said Buyens. 

The acquisition of CineStore activities will be closed by the end of Q1 2011. 

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You can read the full Barco press release here.

Information about CineStore’s products is here.

Information about Barco’s Q4 and full year 2010 results is here.

The Reuters article about Barco’s M&A plans is here.

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More Broadcast Vendor M&A: Technicolor Receives Binding Offer for Video Head-End Business, Says Asset Disposal Program is Now Complete

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 03 2011


Technicolor continues to divest non-core broadcast video assets. The company has already sold Grass Valley to Francisco Partners, and it has received an offer for its transmission business from Pater Capital, a German private equity firm.

The remaining piece of Technicolor’s foray into broadcast technology is the company’s video head-end business, currently operated under the Thomson Video Networks brand. Now it looks like this business will also be sold soon.

Technicolor says it has received a fully documented binding offer for the head-end business from the FCDE, an investment fund financed by the FSI (Fonds Stratégique d’Investissement) and major banks and insurance companies operating in France.

Similar to the previous Grass Valley disposals, Technicolor says “the offer values the Head-end business for a non-material amount.”

Technicolor’s head-end business offers a variety of video compression and content processing solutions. It has 525 employees and operates in 15 countries. In 2009 the head-end business recorded revenues of €61m, which Technicolor says was 16% of the total Grass Valley perimeter revenues and 20% of its operating loss.

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Key Elements of the Offer

 §  The scope of the offer includes all assets and employees of the Head-end business. This comprises the entire product portfolio, including video encoders/decoders, MPEG processors, video servers, datacasters, network management, monitoring and switching product lines. The offer also comprises sales and customer services functions as well as the management and support functions.

§  The FCDE will also enter a trademark agreement with Technicolor for the use of the Thomson trademark.

§  The offer values the Head-end business for a non-material amount.

§  Based on the book value of the assets, the Group expects to register a non-cash loss for this disposal in its 2010 financial statements.

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The transaction is expected to close in H1 2011, subject to the relevant customary regulatory administrative approvals and consultations. 

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More Broadcast Vendor M&A: Harris Buys Malibu Media Platform from Spot Runner

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 14 2011

Harris Corporation said today that its broadcast communications division has acquired the Malibu Media Platform from Spot Runner.  Terms were not disclosed.

The Malibu Media platform is an online media exchange that is designed to simplify the buying and selling of TV advertising.  Harris says it plans to transition the newly acquired technology into its broadcast products in order to enhance advertising buy-sell relationships for Harris media software.

Malibu enables cable networks, cable providers, satellite providers and stations to reach more buyers, sell more inventory and provide information to buyers across the life of a campaign. For agencies and advertisers, the system provides opportunities to find inventory faster and more efficiently, while offering enhanced strategic insights to clients. Harris also expects that Malibu will enhance advanced advertising processes for digital-out-of-home and advanced advertising models, including VOD and interactive advertising.

Harris broadcast communications division president Harris Morris said that the Malibu technology was complementary to his company’s existing media and advertising management software systems.  “We believe the longer term benefits it will bring to our clients to be substantial,” said Morris.

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You can read the full Harris announcement here.

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

broadcast industry technology trends, Broadcast Vendor M&A | Posted by Joe Zaller
Feb 04 2011

Cisco Systems announced today that it intends to pay $95m to acquire Inlet Technologies, a provider of video ingest, transcoding and streaming products. 

Cisco says the deal will strengthen the capabilities of its Videoscape TV platform, which has been designed to allowing service and content providers to deliver video content across multiple IP networks.

Under the terms of the agreement, Cisco will pay approximately $95 million in cash and retention-based incentives in exchange for all shares of Inlet. The acquisition is subject to various standard closing conditions and is expected to be complete in the first half of calendar year 2011. 

Inlet, which was founded in 2003, has achieved impressive growth recently as the demand for multi-platform content distribution has taken off globally.  Last month Inlet issued a press release stating that its 2010 revenue had doubled versus the company’s 2009 revenue, and that it had expanded its customer base by 70%.

While that press release did not reveal Inlet’s actual revenue, the company did disclose its 2009 revenue to Inc. Magazine, which ranked Inlet at #647 in its 500|5000 in 2010 and named it the 45th fastest growing software company in America.

According to the profile in Inc Magazine, Inlet’s revenue in 2009 was $7.6m, so its 2010 revenues must have been in the region of $15m.

If this is the case, then Inlet’s investors appear to have achieved a pretty health valuation multiple of more than 6x revenue.

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Update:

This post from Rick Smith confirms that Cisco paid 6X revenue for Inlet.

Capitol Broadcasting, the parent of WRAL Tech Wire, is among the investors that are being handsomely rewarded for backing Inlet Technologies with a nice “exit.” On Friday, Cisco said it would pay $95 million for the Raleigh video technology firm. That’s at least six times Inlet’s estimated annual revenues for 2010 and nearly five times the amount of venture capital Inlet raised over the years.

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You can read the full Cisco announcement about the Inlet deal here.

Inlet’s recent press release about doubling its revenues in 2010 is here.

The Inc. Magazine profile of Inlet Technologies is here

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More Broadcast Vendor M&A: Kit Digital Buys Three Companies for $77m, Says Larger Acquisition is Coming

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jan 31 2011

IPTV asset management solution provider Kit digital said today that it has acquired New York City-based KickApps, Paris-based Kewego, and San Francisco-based Kyte, for a total of $77.2m in three separate cash and stock deals.  Approximately $62.3m will be paid in KIT digital common stock, and approximately US$14.8 million paid in cash.

Although the announcement comes just six weeks after the company closed a $110m stock offering that it said would be used to fund industry M&A activities, company Chairman and CEO Kaleil Isaza Tuzman said that “these acquisition discussions pre-date our public equity offering completed in December 2010; we have sequenced events purposefully and the proceeds from that offering continue to be dedicated to support a larger acquisition which we are currently on track to announce later this quarter.”

New York City based KickApps is a provider of solutions that enable the creation and management of web based video, including a suite of hosted social and media applications and services designed to drive customer engagement.  KickApps’s 2010 revenue was approximately $12m, derived almost entirely from recurring software license fees. The company, which has had three venture rounds, has raised approximately $32m since it was founded in 2005.

Paris based Kewego provides video asset management solutions for managing, broadcasting and monetizing videos on IP connected devices. It reported fiscal 2010 revenues of approximately US$10.2 million, the large majority of which was derived from recurring software license fees. Kewego is profitable on a standalone basis.   The company has raised $19.4m since it was founded in 2003.

San Francisco based Kyte provides a content publishing platform that enables companies to deliver live and on-demand video experiences to websites, mobile devices and connected TVs. Kyte reported fiscal 2010 revenues of US$3.7 million, derived primarily from SaaS platform fees.  Kyte has raised $23.4m from investors since it was founded in 2006.

The company’s press release presented the benefits of these transactions as follows:

  • Acceleration of KIT’s product roadmap by 12-18 months by adding several key technology and product features, including advanced social media tools (KickApps), superior mobile publishing and software development kit (SDK) features (Kyte), and behind-the-firewall and digital signage capabilities for enterprise clients (Kewego);
  • KickApps’ applications and development tools deepen KIT’s ability to integrate new technology assets and form the foundation for accelerated client deployments;
  • Support and extension of KIT’s three major client verticals, adding particular expertise around transportation, automotive, manufacturing and fan-based media assets (such as sports teams and celebrity sites);
  • Strong management additions to KIT’s global team, including R&D and business development hubs in San Francisco and New York;
  • Aggregate transaction accretive on both a trailing revenue and EBITDA multiple basis;
  • Combined 2010 revenues of acquired companies is estimated to have been approximately US$25 million, the vast majority of which was derived from recurring licenses in a software-as-a-service (SaaS) business model;
  • The acquired companies have been growing between 20-35% per year historically on a standalone basis;
  •  Quality new shareholders, including the appointment to the KIT digital board of Santo Politi, founder and general partner of Spark Capital, the venture capital firm behind Twitter, Boxee and thePlatform.

 

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You can read the full Kit digital press release about the three acquisitions here.

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More Broadcast Vendor M&A: Evertz Buys Pharos, Adding Automation and Media Management Capabilities to New Playout Solutions

broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jan 04 2011

When Evertz released their Q2 numbers last month, the earnings press release included a short paragraph that said:

Subsequent Event: The Company, on December 3, 2010, entered into an agreement to purchase the shares of an international technology based company for under $5 million.

When asked about this purchase by equity analysts on the earnings conference call, Evertz EVP Brian Campbell did not identify the acquired company by name, but said that it had revenue of around C$9m and was modestly profitable.  Campbell went on to say that the newly acquired company provides file-based workflow, automation and content management tools that will help Evertz accelerate its penetration of file-based markets, specifically those it will soon be addressing with its recently announced media server and channel-in-a-box products.  

I have now had it confirmed that the acquired company is UK-based Pharos.

There is good logic behind this deal, and it appears to make sense for both sides.  Evertz recently launched video server and channel-in-a-box products, but lacked the media management and automation systems required for comprehensive control.  Pharos had the right software tools, but lacked a hardware platform – a situation that was increasingly becoming an issue as their competitors consolidated and aligned through M&A (e.g. Miranda’s acquisition of OmniBus) and / or as automation vendors increasingly enter the playout business with their own hardware platforms (e.g. Snell’s Morpheus ICE and the Pebble Beach Dolphin system).

Pharos co-founder Spencer Rodd told me the two companies started talking at the 2010 IBC show about how to integrate Pharos’ automation and media management products with the new Evertz playout server and channel-in-a-box products.  The product integration went well and Rodd said that he was very impressed by what he saw at Evertz, especially its engineering ethos and ability to mobilize engineering teams and get projects done quickly.  Once the initial integration was completed, the two companies recognized that a deeper relationship made sense, and the deal was done.

Although Pharos has been acquired by Evertz, it will remain a stand-alone business unit and both Rodd and fellow co-founder Roger Heath are remaining with the company.

Rodd says that no layoffs are planned and that Pharos is currently hiring in order to expand its team and to penetrate new markets including North America.  This is clearly good news for Pharos, since the company was in danger of being stretched too thinly as it worked to deliver complex multi-site projects for customers world-wide.  The additional resources now available to the Pharos team will enable them to deliver projects more smoothly, and should also give customers the confidence to invest in Pharos technologies.

The deal is due to be announced tomorrow.

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More Broadcast Vendor M&A: Rohde & Schwarz Acquires DVS

broadcast industry technology trends, Broadcast Vendor M&A | Posted by Joe Zaller
Dec 16 2010

In a deal that gives it access to new markets and new technology, broadcast test & measurement specialist Rohde & Schwarz announced that it has taken over post production server vendor DVS.

The deal extends the reach of Rohde & Schwarz into the post production market and gives it access to a wide variety of file-based image processing tools.  DVS, also headquartered in Germany is a well established provider of HD, 2K and 4K digital workflow solutions through its Clipster product family.

Jürgen Nies, Head of the Broadcasting Division at Rohde & Schwarz explained the rationale for the deal saying “We are confident that this partnership will result in the transfer of valuable technology from the studio to broadcasting.”  Nies also said that DVS will benefit from the international Rohde & Schwarz sales network.

According to the announcement, the existing structures of DVS and its subsidiaries will be retained, and DVS Digital Video Systems AG will now appear as DVS, a Rohde & Schwarz company.

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You can read the full press release here.

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KIT digital Sells $110.4 Million of Stock, Says it will use Proceeds for Broadcast Industry M&A

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Dec 10 2010

IPTV asset management solutions provider KIT digital said that it sold $110.4m of common stock in a recent public offering, netting the company approximately $102.5m after expenses.

As announced previously, the company says that it plans to use the proceeds of the offering “primarily to acquire and invest in competitive and complementary businesses as part of its growth strategy.”

Company chairman & CEO Kaleil Isaza Tuzman said that the company’s plan is to increase its market penetration from “current estimated 20-plus percent global market share to more than 50 percent within the next 24 months … through a vanguard of organic growth complemented by highly selective, accretive acquisitions.”

Tuzman   said that while the company will continue to evaluate small acquisitions that add geographical and sales vertical reach in areas where we could be relatively stronger, it is also considering “more transformative acquisition opportunities, where we might be able to acquire a top competitor and significantly extend our market share in one action.”

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You can read the full Kit digital announcement here.

Here is the full Kit digital offering prospectus, which provides useful company and market information.

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