Vitec Group Acquires SmallHD
Announced today the Vitec Group has acquired SmallHD. What does this mean? Well it could mean more competitive pricing on SmallHD products since the Vitec group is very big. They have acquired a lot of very well known companies in the past few years. Here a several well known brands.
Bags
Camera Support
Lighting
Wireless Systems
Mobile Power
Thats a pretty impressive list of companies and now you can add SmallHD to them. Congrats to SmallHD and Wes Phillips and Dale Backus! Good luck on whatever you guys do next. I’m sure it will be top notch just like the monitors you make.
Press Release.
The Vitec Group plc (“Vitec”), the international provider of products and services for Broadcast & Video and Photographic markets, announces that it has acquired the business of SmallHD. SmallHD is a leading provider of high-quality, high-definition on-camera field monitors used by broadcasters and independent content creators.
Based in North Carolina, USA, SmallHD has pioneered the design and manufacture of rugged and future-proof monitors to support the significant increase of independent filmmakers and videographers who require high-quality, high-performing solutions. SmallHD’s products are manufactured in the USA and are designed around the demands of the growing global community of independent content creators.
The acquisition is in line with Vitec’s strategy of offering a growing range of high technology solutions to the Group’s established global customer base. It complements Vitec’s existing video activities, including Teradek, which serves a similar customer base. There are opportunities to sell SmallHD’s products through Vitec’s global sales and distributor network. SmallHD is being acquired from its current management, who will remain with the business, and it will operate as a business unit within the Videocom Division.
For the financial year-ended 31 December 2013, SmallHD had sales of $8.1 million (£5.2 million) and generated an unaudited adjusted profit before tax of $0.3 million (£0.2 million). The business has grown during 2014 and is investing in new product platforms. As a result, we anticipate both healthy sales and profit growth going forward. As at 31 December 2013, SmallHD had gross assets of $2.5 million (£1.6 million).
Under the terms of the acquisition, the initial estimated cash consideration is $4.6million (£2.9 million) on a debt/cash free basis. This is subject to certain post-completion adjustments for changes in net assets.
Up to a further $25.4 million (£16.3 million) is payable in cash dependent on the future profitability of SmallHD. This will reflect performance against demanding EBITDA targets over a two and a half year period to 30 June 2017. The maximum payment would be achieved if SmallHD delivers these targets with an annualised EBITDA run-rate of $9.0 million in 2017.
The consideration will be financed out of Vitec’s existing banking facilities. The Board expects the acquisition to be earnings enhancing1 (before charges associated with acquired businesses) in the year ending 31 December 2015.
Stephen Bird, Vitec’s Group Chief Executive, commented on the acquisition:
“I am delighted to welcome the SmallHD team to Vitec. This high technology business complements our market-leading broadcast activities and is in line with our strategy of enabling our customers to capture and share exceptional images.
There is an increasing demand for SmallHD’s products from the growing community of independent content creators who use this world leading technology. The business has great prospects and we anticipate that it will generate a good return on our investment.”
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