Vislink plc has completed the acquisition of Pebble Beach Systems for a total consideration of USD 24.78m. Pebble Beach Systems has been purchased with in excess of $9.8m cash on the balance sheet, resulting in an effective net consideration of $14.9. The cash consideration will be funded out of existing Group resources and a new […]
Vislink plc has completed the acquisition of Pebble Beach Systems for a total consideration of USD 24.78m. Pebble Beach Systems has been purchased with in excess of $9.8m cash on the balance sheet, resulting in an effective net consideration of $14.9.
The cash consideration will be funded out of existing Group resources and a new $16.6 million debt facility (“Facility”). The Facility has a three-year tenor and is split into a $4.99 million amortising term loan and a $11.63m flexible revolving credit facility. The Facility charges are on normal commercial terms.
The acquisition of Pebble Beach Systems will move Vislink into the provision of software solutions for playout with advanced software technology. The company’s existing capabilities of offering broadcasters wireless communication systems for the capture of live TV coverage of news, entertainment and sports events will now be complemented with world class television automation and media management services for broadcast studios. Vislink will now be able to offer broadcasters a complete ‘scene-to-screen’ solution. Furthermore, Pebble Beach Systems will gain from access to significantly increased sales channels through the global network of over 900 broadcasters that Vislink works with as well as its international network of offices.
The total consideration for Pebble Beach Systems is £14.9 million with Pebble Beach Systems shareholders investing $3.32 of the consideration in new Vislink ordinary shares, which are to be held for a minimum of two years from completion. The Pebble Beach Systems 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 and assisting Vislink in expanding its software capability as a Group.
Commenting on the acquisition, John Hawkins, Vislink’s Executive Chairman, stated: “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.”
Pebble Beach Systems benefits from long term contracts with clients and for the 12 months ended 30 June 2013, its audited accounts recorded turnover of $9.37m EBITDA of $2.16m and profit before tax of $2.16 million. Net assets were $7.26m and it has in excess of $9.81m in cash on its balance sheet at the time of completion. The transaction will be immediately earnings enhancing.
Peter Hajittofi, Managing Director of Pebble Beach Systems, added: “We are delighted to be joining the Vislink Group, It has a fantastic global tier 1 client base in the broadcast sector that will give us an excellent platform for accelerated growth.”
