Vislink, the London-listed satellite TV and communications equipment developer, has bought content management firm Pebble Beach Systems in a £14.9m (US$25m) deal.
Vislink paid £12.9m in cash and issued 4,700,904 new Vislink ordinary shares at a price…
Vislink, the London-listed satellite TV and communications equipment developer, has bought content management firm Pebble Beach Systems in a £14.9m (US$25m) deal.
Vislink paid £12.9m in cash and issued 4,700,904 new Vislink ordinary shares at a price of 42.545 pence each to Pebble Beach’s shareholders.
Given that Pebble Beach was purchased with in excess of £5.9m cash on the balance sheet, however, the effective net consideration was £9m.
Vislink said the cash portion of the deal will be funded out of existing group resources as well as a new £10m debt facility. The financing is split between a £3m three-year amortising term loan and a £7m three-year flexible revolving credit facility.
Founded in 2000, and headquartered in the UK, Pebble Beach develops and supplies automation, ‘channel in a box’ and content management solutions for TV broadcasters, cable and satellite operators.
Vislink said the acquisition enables it to offer TV automation and media management services for broadcast studios to complement its existing capabilities.
John Hawkins, Vislink’s executive chairman, said: “Pebble Beach Systems is a perfect fit given our focus on product leadership and it will enable us to offer our global broadcasting clients a complete scene-to-screen solution.
“Additionally, the acquisition fits perfectly into our long term strategy of acquiring software and services capability that we hope to drive recurring revenues for the group.”
The Pebble Beach business will continue to operate as a stand-alone unit within the Vislink group and its founders, who will continue to manage the business, will be staying with the company.
For the 12 months to the end of 30 June 2013, Pebble Beach reported turnover of £5.64m and EBITDA of £1.3m.
