EVS announced that it now owns 100% of Scalable Video System GmbH (SVS) and Dyvi Live SA, two related firms that produce and market IP-based production switchers.
EVS, which purchased 25% of SVS in May 2013, has now paid €1m in cash to acquire the remaining 75% it did not already own. The deal also includes an “a possible future earn out based on the performance over the 2015-2020 period.” However, the terms of the earn-out provision were not specified.
Separately, EVS also paid €100,000 to acquire the remaining 5% it did not own in Brussels-based Dyvi Live SA, which distributes SVS products under the DYVI name
In its Q3 2014 financial results, EVS said the principal reason it had invested in SVS was to give the company access to SVS’s “promising technology.” The company went on to describe it’s financial relationship with SVS and DIVT, saying: “Notwithstanding that EVS only holds 25.1% of the shares outstanding as at September 30, 2014, the Group considers to have the control of SVS because it has the power on the business decisions and it controls totally the outflow of the company through the exclusive distribution agreement between a new fully owned subsidiary (DYVI LIVE, fully consolidated in the EVS accounts) and SVS. Moreover, EVS finances the future expenses occurring for the SVS development. Consequently, SVS is fully consolidated and non-controlling interests are accounted for (74.9%). In 9M14, these two entities have contributed EUR 0.1 million to EVS revenues, EUR -2.7 million to EBIT and EUR -1.7 million to net group profit, including non-controlling interest. At September 30, 2014, goodwill amounted to EUR 1.1 million.”
In announcing it has acquired the remainder of the outstanding shares in both SVS and DIVY, EVS said “these moves will enable EVS to manage that promising product line in a more efficient and holistic way.”
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