Posts Tagged ‘HME’

Clear-Com Acquires Trilogy Communications

Analysis, Broadcast Vendor M&A | Posted by Josh Stinehour
Aug 08 2016

Intercom solution provider Clear-Com has acquired competitor Trilogy Communications.  The purchase price equates to a valuation of 0.9x annual revenue.  cc-trilogy

Clear-Com is a subsidiary of Poway, CA based HM Electronics (“HME”).  Trilogy is headquartered in Andover, Hampshire UK and had been owned by the Foresight Group, a UK based infrastructure and private equity investment manager.

In its 2015 annual report, Foresight had indicated Trilogy was pursuing strategic options including a possible sale.

Based on Foresight’s disclosure, the acquisition price for Trilogy is GBP 2.9 million.  According to its regulatory filings, Trilogy’s revenue for the trailing twelve months ending February 2016 was GBP 3.26 million.  Using these figures the transaction values Trilogy at a 0.9x multiple of annual revenue.  When HME purchased Clear-Com from the Vitec Group in 2010, the valuation was 0.4x annual sales.

Trilogy’s revenue declined (in GBP terms) 23% in the twelve months ending February 26, 2016.  This was preceded by revenue decreases in 2013 and 2012 (2014 showed slight growth).  In aggregate, annual sales decreased 62% between the fiscal year ending February 2012 and the most recent fiscal year ending February 2016.

Trilogy’s profitability was impacted by the decline in sales.  EBITDA loss was GBP 762,000 for the fiscal year ending February 2014 and GBP 509,000 for the fiscal year ending February 2015.

Foresight’s financial reports provide additional context on the declining performance of Trilogy.  The principal cause cited for the revenue declines since 2012 were delays in US Defense orders.  The broadcast division of Trilogy was cited as facing a difficult trading environment in each of 2014 and 2015.

In the press release announcing the acquisition, Mitzi Dominguez, CEO of Clear-Com stated, “Both companies have been serving the professional intercom business for decades and bring a wealth of industry knowledge to the marketplace. The efforts of our combined teams will deliver tremendous added value to customers all over the world and will create new business opportunities for both companies. We extend a warm welcome to all Trilogy employees and customers.”

Bob Boster, President of Clear-Com, added some context on the technology alignment of the businesses.   “Their specialized matrix solutions perfectly complement Clear-Com’s highly-programmable and scalable digital matrix portfolio, increasing each team’s capabilities to meet the ever-growing and vastly-diverse communication needs across the markets we serve.  Trilogy’s SPG solutions will also be well received by our broadcast customers globally” said Mr. Boster.

 

Related Content:

Press release: Clear-Com Acquisition of Trilogy Communications

 

 

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 07 2011

UK-based Vitec plc said that its revenue from the broadcast and film markets in 2010 was £121.6m, a decline of 17.3% versus 2009. Taking into account currency fluctuations and the company’s reduced revenue resulting from the sale of Clear-Com to HME, revenue declined by 6.6 percent. 2010 revenue was also impacted by the end its BAS transition contract.

Vitec’s Videocom division includes a dozen brands that serve various parts of the broadcast industry: Anton/Bauer, Autoscript, The Camera Store, Litepanels, Microwave Service Company, Nucomm, OConnor, Petrol Bags, RF Central, Sachtler, Vinten and Vinten Radamec.

Revenue from the company’s services division (primarily equipment rental company Bexel) was £34.3m in 2010, an increase of 30.4% versus 2009, driven by major events including the Winter Olympics.

The company said that the broadcast market improved in all geographies, driven by a recovery in TV advertising and the continued transition to HDTV operations.

The company says that it sees multiple growth opportunities in the broadcast and video market, including:

  • LED lighting, which delivers significant energy saving over traditional lighting
  • Business and industry applications for existing products;
  • Microwave systems (outside the US)
  • Robotics as video production becomes more automated

 

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You can read the full Vitec 2010 earnings press release here.

The Vitec earnings call presentation to financial analysts is here.

Information about Vitec’s results for the first half of 2010 is here.

Information on Vitec’s sale of Clear-Com to HME is here.

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Two Broadcast M&A Deals: HME Buys Clear-Com, EVS Buys OpenCube

broadcast technology market research | Posted by Joe Zaller
Apr 06 2010

Two broadcast industry M&A deals have been announced since I wrote last week about the 40 page note put out by boutique investment bank Silverwood Partner, which says that vendors in the broadcast industry need to consolidate.

Last Friday HME announced that is acquiring Clear-Com from Vitec, a move that will strengthen their position in the broadcast intercom / talkback market.

Today EVS said that is is buying MXF specialist OpenCube, a bolt-on acquisition that brings additional file-based and MXF expertise in-house.

There have also been a number of industry partnerships announced such as the deal between Harris and Echolab, which sees Harris reselling Echolab production switchers.

NAB 2010 is now a week away, and it’s common that these deals are announced around major trade shows. It will be interesting to see if there are more deals coming.

2010 Syndicated Broadcast Technology Market Research Now Available

broadcast technology market research | Posted by Joe Zaller
Mar 05 2010

Reports from the 2010 Big Broadcast Survey (BBS), conducted by Devoncroft Partners, are now available for purchase.

The 2010 BBS is the largest ever and most comprehensive market study of the broadcast industry. More than 5,600 broadcast professionals in 120+ countries participated in the project.

Reports derived from BBS data deliver insight into the opinions and attitudes of key technology buyers including broadcasters, playout centers, cable/satellite/ IPTV operators, radio stations, recording studios and more. This includes industry trends; purchase intent and buying behavior; major project plans; products being evaluated for purchase.

2010 BBS reports also provides detailed opinions of 148 broadcast technology vendor brands in 27 separate product categories (see below for details)

For more information about the available reports and their contents, please follow this link.

 

Product Categories Covered in 2010 BBS reports:

 

Vendor Brands Covered in 2010 BBS reports:

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