US-based broadcast solutions firm NEP has acquired Swedish outdoor video and display specialist Mediatec for an undisclosed sum to expand its reach across Europe.
Mediatech was formed from the merger of three broadcast groups in 2007. It has made at…
US-based broadcast solutions firm NEP has acquired Swedish outdoor video and display specialist Mediatec for an undisclosed sum to expand its reach across Europe.
Mediatech was formed from the merger of three broadcast groups in 2007. It has made at least nine acquisitions since then with the backing of its current majority owner, private equity firm Stena Adactum.
NEP has also been on a spending spree since a majority stake in the group was sold to private equity firm Crestview Partners at the end of 2012.
The group expects to complete its latest acquisition in the coming weeks, helping to give it more than 100 HD outside broadcast units, satellite uplink trucks, and other equipment and post-production facilities.
“We see fantastic opportunity for growth in Europe, and I look forward to working with Paul Henriksen, the managing director of Mediatec Broadcast and Kenneth Paterson, the managing director of Mediatec Solutions, along with both of their teams, to continue to expand their business,” said NEP CEO Kevin Rabbitt.
Outside the US, the group already had a presence in the UK, Ireland, the Netherlands, Dubai and Australia. Mediatech, which posted turnover of €101m for 2011, has offices in Australia, Denmark, Germany, Norway, Spain, Sweden, Switzerland and the UK.
NEP is funding the deal through a mix of incremental borrowings from Barclays, assumption of Mediatec’s existing debt, and additional cash from funds managed by Crestview in exchange for common equity, as well as equity contributions by NEP’s management.
It expects certain existing Mediatec shareholders to roll over their equity into NEP, helping the transaction be deleveraging in nature.
Stena Adactum currently owns 63% of Mediatec. Paterson and Henriksen own 21.5% and 0.5%, respectively. Another Swedish investment firm called Holtback Group owns 15%.
The sellers hired Stella Advisors for financial advice and Wistrand as legal adviser.
Mark Patricof, a member of NEP’s board, played an advisory role on his company’s behalf, with Jones Day serving as its legal advisers.
Last month, NEP snapped up Irish satellite uplink and live event specialist The Screen Scene Group from its directors. That deal followed acquisitions in December of Dutch video display firm Faber Audiovisuals, and Australian video solutions provider Silk Studios.
