The value of the transaction is 2.65 million Euros, to be fully paid in cash. Thanks to this acquisition, Giglio Group will now incorporate a strategic partner capable of integrating its TV signal broadcasting technologies
Giglio Group, global multimedia and TV network have announced the acquisition of the totality of M-Three SatCom Srl (M-Three), an Italian company active in the supply of high-end services and solutions for the radio and TV broadcasting industry. The company counts among its clients the major TV and radio networks both Italian and foreign. M-Three operates via a proprietary infrastructure based on two teleports for satellite broadcasting integrated in an optical fibre network with hundreds of international PoPs, that allow the company to detect and distribute signals all over the world.
The value of the transaction is 2.65 million Euros, to be fully paid in cash. Thanks to this acquisition, Giglio Group will now incorporate a strategic partner capable of integrating its TV signal broadcasting technologies, both via satellite and optical fibre, together with Giglio Groups very own platform of content and channels that already spread all over the world. M-Three closed 2014 financial year with a total revenue of 8.3 million Euros and an EBITDA of 586,000 Euros (7%), showing a wide margin for improvement. The sum paid by Giglio Group to acquire 100% of MThree was determined by multiplying 2014 EBITDA by 4.5, confident that the same margin showed in the previous years will improve significantly in the near future. Giglio Group will benefit largely from this transaction, both economically and strategically. By acquiring M-Three, the Group now owns an important production and broadcasting infrastructure, and can count on a better support for the broadcasting of its own channels, paired with economies of scale due to the integration in the service-creation chain. Furthermore, M-Three presents significant potential for growth, especially on an international level, which combines perfectly with Giglio Groups global growth strategy, thus significantly increasing its consolidated revenues as early as 2016. Alessandro Giglio, Chairman of Giglio Group, comments: Content is King, distribution is Queen!
The optical network and satellite broadcasting capacity of M-Three, paired with Giglio Group TV channels, mark the beginning of a new generation of Media companies: a Media Factory 3.0, capable of managing all of its content on all digital platforms worldwide and ready to tackle the challenges of TV services new technologies, such as Netflix, head on. This deal is a great leap forward for our activities, and we are sure that it will translate in a strong economic growth for the Group. A new tech highway is born, and it will allow the Group channels to be broadcast faster around the globe, with the best optical fibre and satellite broadcasting technologies, that will allow us to encrypt and deliver our content globally and in real-time. Moreover, considering MThrees leading position in this industry and its potential on an international level, we can safely say that we sealed a very positive economic deal that will surely produce significant returns for the Group.
By acquiring M-Three, Giglio Group becomes an authentic technological hub capable of distributing TV signals via satellite and optical fibre all over the world, as well as producing and broadcasting TV content, thus dramatically improving its own productive process. This will be possible because the transmission time intervals will be completely cancelled, creating de facto and advanced platform which integrates TV channels and content.
M-Three SatCom enters Giglio Group, but will retain its structure, its operational independence and its main mission. It will also continue to support high-end service development for its clients while benefiting from the strong synergies with the Group. Michele Magnifichi, current CEO of MThree Satcom, will still be leading the company for the next three years, ensuring the necessary continuity and structural development for the Group.
