Posts Tagged ‘Harris Broadcast’

Thorsteinson Replaces Cross as CEO of Quantel and Snell

Analysis, Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Mar 04 2015

Quantel and Snell announced that Tim Thorsteinson has replaced Ray Cross as CEO, effective immediately.news_Tim_Thorsteinson

According to the company, Thorsteinson “is the ideal individual to lead the next stage in the development of the combined Quantel and Snell.”

Cross, who had been CEO of both Quantel and Snell since March 2014, when it was announced that Quantel had acquired fellow UK-based broadcast technology vendor Snell, a deal that had been long-rumored in the industry, since the two companies already had a common parent, Lloyds Development Capital (LDC), the investment arm of Lloyds Bank.

Previously, Cross had been CEO of Quantel since December 2005.

At the time of the Quantel-Snell deal, the company said in a statement that the combined entity had revenue of more than $170 million and office in 16 locations around the globe, making it one of the larger vendors in the broadcast industry.  The company has not provided an update on its performance since that time.

It will be interesting to see what moves Thorsteinson, a longstanding broadcast industry executive, will make as CEO of Snell and Quantel, companies he has competed against in previous roles.

Thorsteinson is a well-known figure in the broadcast industry having headed-up several of the industry’s largest technology vendors over the past 15 years.

In January 2013, Thorsteinson was named CEO of Grass Valley, replacing Alain Andreoli, who had been appointed by private equity firm Francisco Partners following their 2010 acquisition of Grass Valley from Technicolor.

Just over a year later, Thorsteinson oversaw the $220m sale of Grass Valley to Belden Corporation, who combined it with Miranda, keeping the Grass Valley moniker for the enlarged entity.

Interestingly, Thorsteinson was also involved in the sale of Miranda to Belden.  In April 2012, he appointed a director of Miranda Technologies during the time that activist investor JEC Capital was agitating for a sale of that business.  Three months after Thorsteinson became a director of the company, Belden Corporation acquired Miranda for an enterprise value of $356m.

Thorsteinson was the President of Harris Corporation’s Broadcast Communications Division from 2006-2010.  He was appointed to this role following the $460m purchase by Harris of Leitch Technology Corporation, where Thorsteinson had been CEO since November 2003.

Prior to Leitch, Thorsteinson was CEO of Grass Valley Group, and oversaw the December 2001 sale of Grass Valley Group to Thomson Multimedia for $172m.

“We are delighted to have Tim Thorsteinson join Quantel to continue the company’s transformation. Tim has a proven track record of value creation, and his knowledge and experience are a great fit to grow the combined Quantel and Snell business into a major force in the rapidly changing broadcast industry,” said Chris Hurley, Managing Director Lloyds Development Capital and Quantel Board Director. “I would also like to thank Ray for all his hard work and achievements at Quantel over the past 10 years.”

“I’m very excited to be joining Quantel,” said Thorsteinson. “It is one of the larger independent businesses in our industry, with world class products and a rich history of innovation. I want to build on that tradition to create an organization 100% focused on helping our customers prosper in the media technology world.”

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Related Content:

Press Release: Tim Thorsteinson becomes Quantel CEO

Broadcast Vendor M&A: Quantel Acquires Snell

Press Release: Quantel acquires Snell to create new force in media technology

Quantel – Snell FAQ

Belden Makes it Official – Combination of Grass Valley and Miranda to be Called Grass Valley

Broadcast Vendor M&A: Belden Completes Acquisition of Grass Valley, Will Invest $25 Million in Integration of Combined Business

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

Belden Closes Deal to Acquire Miranda

Thorsteinson Appointed to Miranda’s Board of Directors in Otherwise Uneventful AGM

Miranda Nominates Tim Thorsteinson as Director

Activist Shareholder Drama Continues at Miranda Technologies

Technicolor Receives a Binding Offer from Francisco Partners for Grass Valley Broadcast Business

Press Release: Tim Thorsteinson Named President of Harris Corporation’s Broadcast Communications Division

Press Release: Harris Corporation Completes Acquisition of Leitch Technology

WSJ Article: Thomson Multimedia to Buy Grass Valley for $172 Million

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

Belden’s Acquisition of Miranda to Close on or Before July 27, 2012

TVNewsCheck Article (9-29-2011): Tech One-on-One With Simon Derry — Snell Aims To Master the U.S. Market

Advent Venture and LDC close £72m broadcasting merger

Advent Venture Partners and LDC Complete Their Portfolios Merger – March 9, 2009

Video: Pro-Bel and Snell & Wilcox CEOs Discuss Merger (2009)

Press Release (11-6-2003): Chyron Sells Pro-Bel to LDC

Broadcast Magazine (2002): Snell Secures £22m from Advent

Press Release (2002) Advent Venture Partners invests GBP13m in Snell & Wilcox

Variety Article (7-14-2000): Carlton sells tech arm Quantel to LDC for £51 million 

 

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Harris Broadcast Splits into Two Standalone Companies, Drops Harris Name, Brings Back Gates

Broadcast Vendor M&A | Posted by Joe Zaller
Mar 17 2014

Harris Broadcast CEO Charlie Vogt told a crowd of broadcast industry customers, press, and analysts that company has split itself into two separate businesses, Imagine Communications and GatesAir.

Vogt, who made the announcement at the company’s first Media Day, held at Madison Square Garden in New York City, will be CEO of both companies.

Under the new corporate structure, the Harris Broadcast portfolio of radio and TV broadcast transmission products are now part of GatesAir, and the rest of the company’s product line-up are part of Imagine Communications.  The split is effective immediately, and the companies will have separate booths at the upcoming NAB 2014 tradeshow.

The part of the business that is now Imagine Communications will be headquartered in Vogt’s hometown of Dallas, and will have offices in Denver, Toronto, Los Angeles, Tel Aviv and Beijing.

GatesAir will be headquartered in will be headquartered in Cincinnati, Ohio, and will operate manufacturing, supply chain and customer fulfillment in Quincy, Illinois.

Although the announcement marks the end of the Harris name of the broadcast industry after more than half a century, it also marks the re-entrance of the Gates name.  Founded in 1922, Gates Radio was acquired by Harris Corporation in 1957, and became the Harris transmission division.  With the use of the Gates name for its new company, the Harris Broadcast transmission business has come full-circle. The grandson of Gates Radio founder Parker Gates was on hand at the event and said the family was pleased by the news.

Following the announcement of the new structure, Vogt and Imagine Communications CTO Steve Reynolds outlined a bold vision for the company’s future.

On the GatesAir side, Chief Product Officer Rich Redmond described how the company is meeting the growing demand for wireless delivery of audio, video, and multimedia content.

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Related Content:

Press Release: Harris Broadcast Becomes Imagine Communications and GatesAir

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© Devoncroft Partners 2009-2014. All Rights Reserved.

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Broadcast Vendor M&A: SintecMedia to Acquire Pilat Media for £63.3 million

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Jan 17 2014

In a move that further would concentrate the broadcast business management (aka traffic & billing) market, SintecMedia and Pilat Media have announced the terms of a recommended proposal whereby SintecMedia will acquire Pilat.

Under the terms of the proposed deal, SintecMedia plans to acquire the shares of Pilat that it does not already own in an all cash deal that values Pilat at £63.3 million ($103.5m).

PE firm Riverwood Capital Management, which owns SintecMedia, will provide 49% of the financing, with the remainder funded from the existing resources of the SintecMedia Group, including (to the extent required) pursuant to a pre-existing debt facility made available to SintecMedia by Bank Leumi.

SintecMedia says its strategic plan for the Pilat business is “to gradually integrate certain functions where appropriate to realize synergies and economies of scale; but as both companies face growing demand for their products and services and, given their backlogs of work, this is unlikely to affect the vast majority of positions and staff across the two companies.”

 

Second Attempt at Merger Between SintecMedia and Pilat Media

This is not the first time that Sintec and Pilat have flirted with combining the companies.

In 2009, SintecMedia mounted a similar bid to takeover of Pilat Media, but was unable to gain the required approval of 75% of Pilat’s shareholders.

The 2009 deal valued Pilat Media at £16.3m, or about 25% of the offer currently on the table.

Once again, the newly announced deal must achieve approval from 75% of Pilat Media’s shareholders.

However, this time around the companies should have an easier time gaining this approval than they did during the time of the attempted 2009 merger.

The proposed deal already has the buy-in from Shaul Elovitch whose Eurocom Group owns 23.9% of Pilat Media, and SintecMedia already owns a further 22.7% of Pilat as a result of the attempted 2009 merger and through continued accumulation of the company’s shares.

Remaining Pilat Media shareholders with a 400% reward for their patience since rejecting SintecMedia’s 2009 overtures.  They will also be paid in cash, something pointed out by SintecMedia CEO, Amotz Yarden, who said the proposed deal represents a “substantial premium” to Pilat’s recent share value, and “the boards of SintecMedia and SMS believe that, given the economic uncertainty and market pressures facing the industry, this represents a very good opportunity for Pilat Shareholders to realize their investment in cash today.”

 

 

Third M&A Deal for SintecMedia Since Riverwood-backed Management Buyout

If the deal gains shareholder approval, it will be the third acquisition by SintecMedia since it was purchased in 2011 by PE firm Riverwood Capital Management for approximately $110m.

Sintec acquired StorerTV in January 2013, and then acquired Argo Systems a few weeks later, in an effort to bolster Sintec’s presence in the North America Market.

Whereas StoreTV and Argo Systems were relatively small deals, the tie-up with Pilat Media is a much larger and arguably transformative deal for the company, and potentially has wider ramifications in the broadcast industry as well.

By acquiring Pilat Media, Sintec will likely become one of the largest players in the broadcast business management software market, and will almost certainly be the biggest traffic & billing vendor outside of the United States where Harris Broadcast and WideOrbit are the two leading vendors.

Not only will the Pilat acquisition make SintecMedia a major player in traffic & billing, it will also transform the company into one of the larger pure-play software vendors in the broadcast space.  Both companies have more than 300 employees and a broad range of blue chip customers around the world.

 

Deal Recommended by Both Sides

Acceptance of the proposed transaction has been recommended by the boards of both companies, who said in a statement that “the management of SintecMedia and Pilat have together agreed the approach for organizing and managing the enlarged group harmoniously, leveraging the relative strengths of each organization.”

For its part, Sintec says it “attaches great importance to the skills, experience and knowledge of the existing employees of the Pilat Group, who have contributed to the success of the business to date and believes that they will benefit from enhanced career and business opportunities within the Enlarged Group,” and that “in conducting any rationalization, SintecMedia intends that the employees of the Pilat and SintecMedia groups will have equal opportunity.”

Sintec has also given assurances to the Pilat Directors that the existing employment rights (including pension and severance rights) of all Pilat Group employees will be fully safeguarded, there will be no changes in the conditions of their employment, and that SintecMedia has no any intention to change the locations of Pilat’s places of business or to re-deploy its fixed assets.

 

Management of Enlarged Company

When/if the deal closes, the board of the enlarged group will be comprised solely of existing SintecMedia directors, and the directors of Pilat Media will resign from the Pilat Board.

At that time, Pilat Media’s CEO and CFO, Avi Engel and Martin Blair, will also resign as employees of Pilat Media. Both Engel Blair will provide handover support as part of their notice period for up to one month following their resignation, and will then be released from their employment, and paid in lieu of the balance of their contractual notice period. Engel and Blair have each agreed to provide up to 15 days of additional handover assistance within the first 12 month period after the deal closes, and Engle will also enter into a consultancy agreement with SintecMedia on terms yet to be agreed.

Pilat’s Remuneration Committee has agreed to pay Engel £300,000 and Blair £40,000 respectively in recognition of their roles in effecting the acquisition. Pilat Media chairman, Michael Rosenberg, will receive £60,000 for his role in the deal.

The companies said that they expect the deal to close towards the end of Q1 2014.

When the deal closes Pilat will then be wholly owned by Sintec, and Pilat shares, which are currently traded on the AIM and TASE exchanges, will be cancelled.

 

Pilat Media’s had revenue of £23.48m for the full year 2012.  Revenue through the third quarter of 2013 was £18.69m, up 18.4% versus the same period in 2012.

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Related Content:

Proposed acquisition of Pilat Media Global plc (“Pilat”) by SintecMedia Ltd.

SintecMedia Limited 2009 Offer for Pilat Media Global

Broadcast Vendor M&A: SintecMedia Acquires Argo Systems

Broadcast Vendor M&A: SintecMedia Acquires StorerTV

Press Release: Taldan Capital Leads $110 million the Buyout of SintecMedia

Riverwood Capital Portfolio Companies – SintecMedia

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Harris Broadcast Completes Acquisition of Imagine Communications

Broadcast Vendor M&A | Posted by Joe Zaller
Jan 17 2014

Harris Broadcast (HBC) has completed the acquisition of Imagine Communications, a provider of high density adaptive bitrate compression and transcoding products for the service provider market. Terms of the deal were not disclosed.

Privately held Imagine, which has raised $34.7m in venture funding since its inception, currently counts many of the top North America cable MSOs and telco operators as its customers. The majority of Imagine’s revenue currently comes from cable operators in North America, and HBC plans to expand this by selling Imagine’s products through its global sales channel.

According to Brian Cabeceiras, chief strategy officer at Harris Broadcast, a total of 32 employees and 4 contractors will join Harris Broadcast from Imagine.  This includes Imagine’s CTO Ron Gutman, the entire R&D team, the VP of Engineering, and key sales and service staff in North America.

When I first read about this deal last month, it seemed to me that Imagine is in a different business than HBC. Imagine sells high density transcoding appliances to pay TV operators (a very competitive space with several well-entrenched players), whereas Harris Broadcast develops equipment sold into broadcast engineering and operations environments.  These are different markets with different customers, business models, and competitive environments.

I contacted Cabeceiras, and asked him about the rationale for the deal, and whether the acquisition signifies a more broad-based move by HBC into the service provider market.

Cabeceiras made the point that “HBC already has a strong presence in Cable MSO’s via our Landmark Traffic, Scheduling, Ad Sales product where we see tight integration with Imagine Communications.”

He also highlighted that under new CEO Charlie Vogt, Harris Broadcast is a rapidly evolving company, and that Imagine is a good fit for both where HBC is today, and where it sees itself moving over time.  “Charlie and the management team will oversee a range of strategic development and investments in core Harris Broadcast platforms designed to speed innovation and a customer-first approach. Our roadmaps will advance our leadership in emerging market trends such as IP, Virtualization, Cloud, OTT, TV Everywhere, and 4K. As exemplified by Imagine, acquisitions are among the range of options a company has and will be evaluated on a case-by-case basis.”

As a veteran of the telecom industry, Vogt has likely seen similar technology transitions and he clearly intends to make good use of this perspective in his role at HBC. Vogt has made no secret of his belief that HBC must aggressively move its portfolio in the direction of software defined networks and a virtualized broadcast infrastructure in order to support the company’s customer base as they move towards new business models that focus on multi-screen delivery and monetization.

With this context in mind, Cabeceiras says Imagine is both a “strong fit in HBC’s core broadcast and media markets as our customers add OTT services and targeted advertising,” and also as provides the foundation for entering the cable MSO/telco market by providing a ready-made customer base facilitated by “strong product for Cable MSO with validated best-of-industry picture quality.”

But most importantly,Cabeceiras says HBC believes that the acquisition of Imagine “fits HBC’s TV Everywhere and MultiService SDN grand strategy,” which includes building “the first true ‘MultiService SDN’ (Software Defined Network), integrating sales, scheduling, automation, playout and delivery throughout both linear and non-linear content distribution networks, utilizing cutting edge software breakthroughs that run in high density, low power commercial-off-the-shelf (COTS) and blade-server environments, consistent with HBC’s vision of software-centric, virtualized operations.”

“TV Everywhere is the future of our industry, and our customers are vigorously pursuing this path to expand their business models and improve the monetization of content across any screen,” said Vogt in a statement about the deal. “The advanced Adaptive Bit Rate (ABR) technology created by Imagine combines quality, density and a small footprint to greatly leapfrog anything else on the market today and improves transcoding economics up to a factor of 10 over competing alternatives. Our content creator and content distribution customers, including cable, MSO and telecommunications service providers, will benefit significantly from end-to-end portfolio integration that establishes a clear pathway to linear and non-linear viewing parity across every screen.”

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Harris Broadcast Names Charlie Vogt CEO

Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 09 2013

Harris Broadcast announced it has appointed Charlie Vogt as CEO.

A 25-year veteran of the IT and communications industry,  Vogt joins Harris Broadcast following nine years as president and CEO of GENBAND where he led a company transformation that encompassed six acquisitions, including Tekelec SSG, NextPoint Networks and Nortel’s VoIP Business. Through successful organic innovation, attention to operational integration and relentless focus on customers, GENBAND became no. 1 in VoIP and delivered a compound annual growth rate of ~100 percent during his tenure

Charlie Vogt -- Harris Broadcast CEO

 

Vogt succeeds Harris Morris, who was appointed president of Harris Broadcast when it was a subsidiary of Harris Corporation in 2010, led the company through its divestiture process and guided the transition period to The Gores Group ownership, including the completion of fiscal year 2013.

“Charlie’s proven track record of taking companies with powerful and promising technology to the next level uniquely positions him to lead this business,” said Carl Vogel, Harris Broadcast Chairman and board member of Dish Network. “His decision to join Harris Broadcast as President and CEO likewise reflects the promise and potential behind the company’s market-leading technology, marquee customers and exceptional employees. Charlie will bring to Harris Broadcast vision, leadership, creativity and operational discipline as well as an entrepreneurial and customer-first culture.”

Mr. Vogel added: “The radio and TV broadcasting industry is embarking on a significant transformation from digital to IP. Charlie was a natural choice as his IP domain knowledge and experience gained while assisting global service providers and cable operators transition to IP has uniquely prepared him to lead the company as this industry undergoes a similar trajectory. We thank Harris Morris for his contributions in guiding Harris Broadcast as we acquired the business and transitioned the company to independence – we wish him well as he pursues new opportunities.”

“I couldn’t be more enthusiastic about joining Harris Broadcast, especially at a time when broadcasters, cable networks and multi-channel content distributors are experiencing so much change – from the impact of on-demand to content delivery on multiple screens and the digital transition to video and audio over IP,” said Mr. Vogt. “I have spent my professional career building businesses, fostering an entrepreneurial culture and introducing disruptive technologies that transform business models. I look forward to leading the Harris Broadcast team to accelerate innovation in areas that will enable the company to experience market-leading growth.”

Mr. Vogt added: “Through investments in R&D and strategic acquisitions, Harris has built the industry’s most comprehensive portfolio of content management technology. The company is well positioned in the broadcast market with unique capabilities such as combining automation, digital asset management, playout and sales and scheduling into a single solution. These strategic assets form an ideal foundation upon which we will invest and differentiate.”

Appointed CEO of GENBAND in 2004, Mr. Vogt expanded GENBAND’s operations to more than 50 countries and secured 80 of the top 100 communications service provider and cable operators as customers. While leading an industry wide transition to IP, he also advised the Federal Communications Commission Chairman on matters of technology and spectrum serving on the FCC advisory council. Mr. Vogt has received industry wide recognition for his leadership, operational acumen and tangible accomplishments including Ernst & Young’s “Entrepreneur of the Year,” Dallas Metroplex Technology Business Council CEO of the Year, Global Telecom’s “Power 100” and Light Reading’s top 10 “movers & shakers.” In September 2012, The Wall Street Journal named GENBAND the no. 1 privately funded company in America topping a list of 5,900 companies.

Prior to his tenure as President and CEO of GENBAND, Mr. Vogt served as President and CEO of Taqua, an IP switching company, which was acquired by Tekelec in 2004. Before Taqua, Mr. Vogt was instrumental in the operational and financial growth of four standard-setting technology companies including ADTRAN, Ascend Communications, Accelerated Networks and Santera Systems. ADTRAN, Ascend Communications and Accelerated Networks executed IPOs, while Santera Systems was acquired. Following Lucent Technologies’ $20 billion acquisition of Ascend Communications in 1999, Mr. Vogt became a senior member of the leadership team.

Mr. Vogt has served as chairman of two companies and as a board member of five companies, in addition to serving on the board of Telecommunications Industry Association, the Federal Communications Commission Advisory Council and the Dallas Metroplex Technology Business Council. He holds a Bachelor’s Degree in Economics and Computer Science from Saint Louis University, where he also played Division I NCAA baseball.

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Related Content:

Press Release:  Harris Broadcast Names Charlie Vogt CEO

Harris Broadcast CEO to Part Ways with Company

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Harris Broadcast CEO to Part Ways with Company

broadcast technology market research | Posted by Joe Zaller
Jul 02 2013

Harris Broadcast said today that its CEO, Harris Morris, who led the company through its divestiture from Harris Corporation and subsequent acquisition by the Gores Group, will part ways with the company on July 3rd 2013.

The news was disclosed via an email sent to all Harris Broadcast staff by company chairman Carl Vogel.

No reason was given for Morris’s departure.

The company will name a new CEO on Tuesday July 9, 2013.

 

The text of Vogel’s email can be found below:

 

 

 

Date:        Tuesday July 2, 2013

To:          Harris Broadcast Employees 

From:        Carl Vogel, Chairman of the Board

 

“This is to inform you that, based on discussions with the board of directors of Harris Broadcast, Harris Morris is transitioning from the Company, effective end of day tomorrow.

“We thank Harris for his contributions to the company over his tenure and for guiding Harris Broadcast through the end of the fiscal year in its transition to an independent company. We wish Harris well as he pursues new opportunities.

“We are excited about the future and look forward to the next chapter for Harris Broadcast. As such, we will be announcing the new CEO to the company on Tuesday, July 9th

 

 

 

Morris joined the Harris Broadcast & Communications (BCD) business unit in January 2008 as VP software systems.  He became president of Harris BCD in February 2010.

In February 2013, Morris was named CEO of Harris Broadcast when it became an independent company following the purchase of Harris BCD by the Gores Group from Harris Corporation.

Prior to his time at Harris, Morris was chief strategy officer at Thomson Learning; and was a partner and vice president for Bain & Company, a global business consulting firm. In his 13 years with Bain & Company, he helped a wide variety of global clients analyze markets, develop growth strategies, expand into international markets and drive operational efficiencies.

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Related Content:

Harris Corp Completes Sale of Broadcast Business to The Gores Group

ASSET SALE AGREEMENT by and between HARRIS CORPORATION and GORES BROADCAST SOLUTIONS, INC. Dated as of December 5, 2012

Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Analyzing the Sale of the Harris Broadcast Division

Harris Corporation To Divest Broadcast Business

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Today: NAB 2013 Media Technology: Strategy and Valuation Conference

broadcast technology market research | Posted by Joe Zaller
Apr 07 2013

If you are in Las Vegas to attend the 2013 NAB Show, you don’t want to miss the second annual “Media Technology: Strategy and Valuation,” conference which is being co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

This event is free for all registered attendees of the 2013 NAB show.

It is being  held in room N239/241 of the Las Vegas Convention Center on Sunday April 7th from 1:45 p.m. to 6:00 p.m.

This year’s conference features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda will offer attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2013 NAB Show.

This session is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.

We are expecting 200+ attendees based on the latest registration numbers, so it’s a good networking opportunity as well.

 

Here’s the conference agenda:

 

1:45 pm – 1:50 pm

WELCOME AND INTRODUCTION

Joe Zaller – President, Devoncroft Partners

 

 

1:50 pm – 2:20 pm

NAB SHOW SPROCKIT PRESENTATIONS

Hear from three market-ready start-ups who have been selected by the NAB’s SPROCKIT initiative.  This session will include an introduction of the SPROCKIT initiative followed by presentations from three of NAB Show’s inaugural SPROCKIT participants.

Presenter(s):

  • Hilary DeCesare, Co-Founder and CEO, Everloop
  • Heidi Messer, Co-Founder & Chairman, Collective[I]
  • John West, Founder & CEO, The Whistle

 

 

2:20 pm – 2:45 pm

THE BROADCAST & MEDIA TECHNOLOGY INDUSTRY IN 2013

Joe Zaller will present a summary of key data derived from the newly published 2013 Big Broadcast Survey (BBS), the largest and most comprehensive study of the broadcast industry. Key results from the 2013 BBS will include key investments areas as well as trends of significance that are impacting these purchasing decisions.

Joe Zaller – President, Devoncroft Partners

 

 

2:45 pm – 3:10 pm

STRATEGIC INDUSTRY ANALYSIS: VALUATIONS, M&A, AND EQUITY FINANCING

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including transaction activity and valuations; vendor strategic considerations; and the current M&A environment along with near-term expectations. Attendees will also learn which businesses are buyers and investors targeting and why.

Presenter(s):

  • Jonathan Hodson-Walker  – Managing Partner, Silverwood Partners
  • Joshua Stinehour – Managing Director, Silverwood Partners

 

 

3:10 pm – 3:35 pm

M&A, VALUATION PERSPECTIVES FROM INDUSTRY EXECUTIVES

Joe Zaller will moderate a panel of three recognized executives at leading vendors will offer views on the critical drivers of value (in context of M&A) in the industry, and discuss the best practices they’ve learned on how to review an acquisition opportunity and how to integrate M&A into overall growth strategies. Obstacles to further industry consolidation will also be discussed.

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Dan Castle — CEO, Telestream
  • Harris Morris – CEO, Harris Broadcast
  • Denis Suggs — Executive Vice President, Belden

 

 

3:45 pm – 4:00 pm

IABM END-USER RESEARCH OVERVIEW

Yves Dupuis, Director of Market Intelligence at the IABM (trade association that represents broadcast technology suppliers) will present an overview of the latest end-user research from the IABM, including the changing requirements of broadcast technology buyers, and what this means for the supply community.

Yves Dupuis — Director of Market Intelligence, IABM

 

 

4:00 pm – 4:25 pm

THE BROADCAST TECHNOLOGY BUYER PERSPECTIVE

Joe Zaller will guide a discussion with broadcast executives responsible for technology budgets as they ponder the questions of most significance to decisions on technology purchasing: How are savvy broadcasters aligning known technology expenditures against uncertain multi-platform revenue opportunities in order to counteract the ‘consumer-broadcast disconnect’? How are these companies assessing the business risk of technology purchase decisions today given the uncertainty of future business models?

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Fred Mattocks – General Manager Media Operations and Technology, Canadian Broadcasting Corporation
  • Steve Plunkett – Chief Technical Officer, Red Bee Media
  • Phil Braden — SVP Technology and Applications, PCCW

 

 

4:25 pm – 4:50 pm

KEYNOTE: TECHNOLOGY CHANGE, BUSINESS CHANGE

Clyde Smith, FOX Networks Engineering and Operations  will offer a broadcast executive’s perspective on the major business issues facing the industry, what major initiatives and projects have been created to solve these issues, a candid assessment of the results of these initiatives, and a discussion of what is still needed from a technology standpoint to address these issues.

Clyde Smith — SVP New Technology, FOX Networks Engineering and Operations

 

 

4:50 pm – 5:15 pm

INVESTOR PERSPECTIVES ON INDUSTRY

Joe Zaller will moderate this panel of private equity professionals who have made recent investments in the media and entertainment space will offer their unique perspectives on trends of significance for the M&E sector. They will also preview their plans for intelligence-gathering at this year’s NAB Show, the trends that are driving investment dollars in the sector, and what characteristics influence their evaluation of an investment opportunity within the M&E industry.

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Dave Golob, Francisco Partners
  • Kevan Leggett, Lloyds TSB Development Capital Ltd
  • William Smales, The Carlyle Group
  • Bryce Winkle, The Gores Group

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© Devoncroft Partners. All Rights Reserved.

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Going to NAB? Don’t Miss 2nd Annual “Media Technology: Strategy and Valuation Conference,” A Thought Provoking Kick-Off to the 2013 NAB Show

broadcast industry technology trends, broadcast industry trends, Broadcast technology channel strategy, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor Brand Research, Broadcast Vendor M&A, Broadcaster Financial Results, content delivery, technology trends | Posted by Joe Zaller
Apr 02 2013

If you are attending the 2013 NAB show, be sure not to miss the second annual “Media Technology: Strategy and Valuation,” conference which is being co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

This event is being held in room N239/241 of the Las Vegas Convention Center on Sunday April 7th from 1:45 p.m. to 6:00 p.m., and it’s free for all registered attendees of the 2013 NAB show.

This year’s conference features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda will offer attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2013 NAB Show.

This session is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.

 

Here’s the current lineup of presenters:

 

1:45 pm – 1:50 pm

WELCOME AND INTRODUCTION

Joe Zaller – President, Devoncroft Partners

 

 

1:50 pm – 2:20 pm

NAB SHOW SPROCKIT PRESENTATIONS

Hear from three market-ready start-ups who have been selected by the NAB’s SPROCKIT initiative.  This session will include an introduction of the SPROCKIT initiative followed by presentations from three of NAB Show’s inaugural SPROCKIT participants.

Presenter(s):

  • Hilary DeCesare, Co-Founder and CEO, Everloop
  • Heidi Messer, Co-Founder & Chairman, Collective[I]
  • John West, Founder & CEO, The Whistle

 

 

2:20 pm – 2:45 pm

THE BROADCAST & MEDIA TECHNOLOGY INDUSTRY IN 2013

Joe Zaller will present a summary of key data derived from the newly published 2013 Big Broadcast Survey (BBS), the largest and most comprehensive study of the broadcast industry. Key results from the 2013 BBS will include key investments areas as well as trends of significance that are impacting these purchasing decisions.

Joe Zaller – President, Devoncroft Partners

 

 

2:45 pm – 3:10 pm

STRATEGIC INDUSTRY ANALYSIS: VALUATIONS, M&A, AND EQUITY FINANCING

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including transaction activity and valuations; vendor strategic considerations; and the current M&A environment along with near-term expectations. Attendees will also learn which businesses are buyers and investors targeting and why.

Presenter(s):

  • Jonathan Hodson-Walker  – Managing Partner, Silverwood Partners
  • Joshua Stinehour – Managing Director, Silverwood Partners

 

 

3:10 pm – 3:35 pm

M&A, VALUATION PERSPECTIVES FROM INDUSTRY EXECUTIVES

Joe Zaller will moderate a panel of three recognized executives at leading vendors will offer views on the critical drivers of value (in context of M&A) in the industry, and discuss the best practices they’ve learned on how to review an acquisition opportunity and how to integrate M&A into overall growth strategies. Obstacles to further industry consolidation will also be discussed.

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Dan Castle — CEO, Telestream
  • Harris Morris – CEO, Harris Broadcast
  • Denis Suggs, Executive Vice President, Belden

 

 

3:45 pm – 4:00 pm

IABM END-USER RESEARCH OVERVIEW

Peter White, Director General IABM will present an overview of the latest end-user research from the IABM, including the changing requirements of broadcast technology buyers, and what this means for the supply community.

Peter White — Director General, IABM

 

 

4:00 pm – 4:25 pm

THE BROADCAST TECHNOLOGY BUYER PERSPECTIVE

Joe Zaller will guide a discussion with broadcast executives responsible for technology budgets as they ponder the questions of most significance to decisions on technology purchasing: How are savvy broadcasters aligning known technology expenditures against uncertain multi-platform revenue opportunities in order to counteract the ‘consumer-broadcast disconnect’? How are these companies assessing the business risk of technology purchase decisions today given the uncertainty of future business models?

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Fred Mattocks – General Manager Media Operations and Technology, Canadian Broadcasting Corporation
  • Steve Plunkett – Chief Technical Officer, Red Bee Media
  • Phil Braden — SVP Technology and Applications, PCCW

 

 

4:25 pm – 4:50 pm

KEYNOTE: TECHNOLOGY CHANGE, BUSINESS CHANGE

Clyde Smith, FOX Networks Engineering and Operations  will offer a broadcast executive’s perspective on the major business issues facing the industry, what major initiatives and projects have been created to solve these issues, a candid assessment of the results of these initiatives, and a discussion of what is still needed from a technology standpoint to address these issues.

Clyde Smith — SVP New Technology, FOX Networks Engineering and Operations

 

 

4:50 pm – 5:15 pm

INVESTOR PERSPECTIVES ON INDUSTRY

Joe Zaller will moderate this panel of private equity professionals who have made recent investments in the media and entertainment space will offer their unique perspectives on trends of significance for the M&E sector. They will also preview their plans for intelligence-gathering at this year’s NAB Show, the trends that are driving investment dollars in the sector, and what characteristics influence their evaluation of an investment opportunity within the M&E industry.

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Dave Golob, Francisco Partners
  • Kevan Leggett, Lloyds TSB Development Capital Ltd
  • William Smales, The Carlyle Group
  • Bryce Winkle, The Gores Group

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© Devoncroft Partners. All Rights Reserved.

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Harris Corp Completes Sale of Broadcast Business to The Gores Group

Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Feb 04 2013

Harris Corporation has completed the sale of its Broadcast Communications Division (Harris BCD) to The Gores Group, a Los Angeles based private equity firm.

Contractual details of the Asset Sale Agreement between Harris and The Gores Group can be viewed here.

The completion of the deal means that Harris Corp is now officially out of the broadcast business, after 50+ year run as one of the broadcast industry’s most significant technology vendors.  However, it appears that, for now at least, BCD will continue to be called Harris Broadcast.

Harris Morris, CEO of Harris Broadcast said “This is an exciting new chapter for Harris Broadcast, our employees and our customers. The Gores Group is an ideal fit to help us move the business forward and help drive innovation, streamline operations and improve customer service. They will also provide us additional resources such as a flexible capital base and introduce new talent to the Company.”

Carl Vogel, a veteran of the cable television and satellite industry, is a senior advisor to The Gores Group and will be a member of the Gores team providing advice and strategic guidance to the Company.

Ryan Wald, Managing Director of The Gores Group added, “We anticipate great things from Harris Broadcast. The Company has proven technology, great products and an outstanding team. With our equity capital and guidance we are confident that Harris Broadcast will transition to a strong independent company that will continue to develop and deliver market leading technology and service to its customers.”

The headline valuation of the deal was $225m, comprised of “$160m in cash, a $15m subordinated promissory note and an earnout of up to $50m based on future performance.”  According to a Harris 8-K filing with the SEC, the terms of the earnout state that in each of the four calendar years from 2013 through 2016, Harris Corporation will receive a contingent payment (in cash) of twenty percent of the revenue of Harris BCD that is in excess of a specified target revenue amount. The target revenue amount required to trigger the contingency payment to Harris Corporation was not specified, so it is difficult to judge how likely it is that the payment will be triggered. This contingent payment amount is subject to an annual cap of $25m in each calendar year (2013 – 2016).

The price paid by Gores for BCD is lower than what Harris executives previously indicated they hoped to achieve.  As a result, Harris Corp recently recorded a non-cash impairment charge of $98m relating to the sale of BCD. This is fourth time the company has written down the value of BCD during the sale process.

Following the most recent write-down of BCD’s book value, the company was contacted by SEC staff regarding the timing of the impairment charges relating to BCD. According to a filing with securities regulators, Harris provided the SEC with the following explanation:

“As of our June 29, 2012 year-end, we wrote down the carrying value of Broadcast Communications (“BCD”) to $461 million, which represented the lower of carrying value ($461 million) or estimated fair value of $490 million less estimated costs to sell of $26.5 million (or $463.5 million). With the assistance of a third-party valuation consultant, we estimated the fair value at that time to be $490 million based on discounted cash flow analysis and an analysis of sale transactions and public company market multiples for companies in markets similar to BCD. This analysis yielded estimated fair values ranging from $487 to $496 million, and included assumptions that reflected expected conditions in the markets BCD operates in. Our analysis was corroborated by a valuation summary prepared by the investment banker we engaged to assist with the sale of BCD and preliminary indications of value from potential purchasers of BCD which we received in early August 2012. Accordingly, we believe the net assets of BCD were appropriately valued at June 29, 2012.

“Unexpected changes in facts and circumstances caused us to conclude impairment indicators were present relative to BCD at the conclusion of our first fiscal quarter ended September 28, 2012. As a result of weaker than expected market conditions and general uncertainty in the market surrounding the BCD sale process, BCD unexpectedly reported lower than forecasted revenue, operating income and cash flows for the first quarter of fiscal 2013. BCD’s lower first quarter results and a lower confidence level in BCD’s ability to meet future financial forecasts resulted in lower preliminary bids from interested parties received during the last week of October ranging from $175 to $310 million. Further, we updated our discounted cash flow analysis as of September 28, 2012 by adjusting our assumptions of expected revenues, operating income and cash flows. Specifically, we reduced our revenue projections, increased projected working capital requirements and applied higher discount rates to reflect greater uncertainty surrounding BCD’s current and future expected financial results. As a result of the lower preliminary bids, our updated discounted cash flow analysis and a revised valuation summary prepared by our investment banker, we reduced the carrying value of BCD as of September 28, 2012 to $287.2 million (estimated fair value of $300 million, less estimated selling costs of $12.8 million), resulting in a non-cash impairment charge of $216.5 million.”

 

Recent Performance of Harris BCD

According to a recent 10-Q filing with the SEC, Harris said its discontinued operations, the vast majority of which relate to BCD performed as follows:

 

 Results of Harris Discontinued Operations Through Fiscal Q2 2013

 

Looking to the Future of Harris Broadcast

Now under new ownership, Harris Broadcast remains one of the largest vendors in the broadcast technology space.  The completion of deal means the company can now put behind it the uncertainty that has surrounded it since Harris Corp announced its intention to divest the business. As an independent company Harris Broadcast can now focus entirely on its core business and execute its strategy for growth and profitability.  It will be interesting to watch the actions the company takes between now and the 2013 NAB Show, which will be the first major public appearance of the new company.

 

 

Related Content:

Harris Corp Press Release: Harris Corporation Completes Sale of its Broadcast Communications Business to The Gores Group

Gores Group Press Release: The Gores Group Completes Acquisition of Harris Broadcast Communications

Harris Corp 10-Q Filing for the Quarterly Period Ended December 28, 2012

ASSET SALE AGREEMENT by and between HARRIS CORPORATION and GORES BROADCAST SOLUTIONS, INC. Dated as of December 5, 2012

Harris Corporation — Correspondence with SEC Regarding Write-Down of the Value of Harris BCD

Harris Corp Reports Q2 2013 Earnings, Writes Down Value of Broadcast Business by Additional $98 Million, Expects BCD Sale to Close in February

Harris Corporation Discloses Structure of Promissory Note and Earnout Provision in Sale of Broadcast Communications Division

Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Harris Corp Announces Q1 FY 2013 Results, Further Writes Down Value of Broadcast Business

Harris Corporation To Divest Broadcast Business

Analyzing the Sale of the Harris Broadcast Division

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© Devoncroft Partners. All Rights Reserved.

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Harris Corp Reports Q2 2013 Earnings, Writes Down Value of Broadcast Business by Additional $98 Million, Expects BCD Sale to Close in February

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Jan 29 2013

Against a backdrop of what CEO William Brown called a “very difficult and uncertain government spending environment,” Harris Corporation announced that its revenue in the second quarter of fiscal 2013 was $1.29Bn compared with $1.31Bn during the same period a year ago.

GAAP income from continuing operations was $142m, or $1.25 per diluted share, compared with $136m, or $1.18 per diluted share.

Harris had little to say about its Broadcast Communications Division (BCD) other than the fact that it has “entered into a definitive asset sale agreement with Gores Broadcast Solutions, Inc., an affiliate of The Gores Group, LLC, relating to the sale of Broadcast Communications.”

The company also disclosed that it recorded a non-cash impairment charge of $98m relating to the sale of BCD.

Harris has written down the value of BCD on three previous occasions. The most recent write-down was in October 2012 when the company said that based on “recent indicators of value during the first quarter of fiscal 2013, including market, financial performance and indications of value from interested parties,” it had recorded non-cash impairment charges in discontinued operations totaling $222m. Harris said that the “vast majority” of this write-down was related to BCD, with only about $6m attributed to the company’s Cyber Integrated Solutions business, which was also discontinued in 2012.

At that time, Brown said that as a result of this charge, Harris had put a net book value of $287m on Harris BCD, which he said provided an “indication of the value we expect to receive” from the sale of the broadcast business.

When Harris announced the deal to sell its broadcast business to PE firm the Gores Group in December 2012, the company put a headline value of $225m on the transaction, or $62m lower than the value Brown had telegraphed to the market two months earlier.

However, through the BCD sale press release and a subsequent regulatory filing with the SEC, Harris disclosed that the terms of its deal with the Gores Group was made up of “a cash payment of $160m, a $15m subordinated promissory note (payable 15 months after closing), and an earnout of up to $50m based on future performance.”

Today’s disclosure that Harris has recorded an additional $98m impairment charge against the value of BCD, means the broadcast business is now valued on its books at $189m. This implies that after receiving the $160m cash payment, and the payment of the $15m promissory note ($16.125m with interest), Harris is not being overly optimistic that it will receive the full potential value of the earnout provision.

Nevertheless, Harris CFO Gary McArthur told analysts that the company “continues[s] to plan to purchase an additional $200 million in shares upon the successful conclusion of the broadcast sale,” something that both McArthur and Brown have reiterated since announcing the intent to divest BCD in May 2012.

McArthur also said that the company expects to close the sale of BCD in early February 2013, thereby ending the company’s 50+ year run as one of the broadcast industry’s most significant technology vendors.

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Related Content:

Press Release: Harris Corporation Reports Fiscal 2013 Second Quarter Results

Harris Corporation Discloses Structure of Promissory Note and Earnout Provision in Sale of Broadcast Communications Division

Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Harris Corp Announces Q1 FY 2013 Results, Further Writes Down Value of Broadcast Business

Harris Corporation To Divest Broadcast Business

Analyzing the Sale of the Harris Broadcast Division

Harris Corporation Shuts Down Cyber Integrated Solutions Business

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© Devoncroft Partners. All Rights Reserved.

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