Vitec Group acquires chipsets maker Amimon for $55 million

Vitec Group PLC has announced that it has acquired chipsets maker Amimon Inc for USD55.0m  in cash. Including employee retention and acquisition costs, Vitec expects to invest $59.9 million or GBP46.1 million in the buy.

For 2017, Amimon generated an operating loss of $700,000 on revenue of $18.6m. Vitec and Amimon have had a customer-supplier relationship since 2012.

Commenting on the acquisition, Vitec Chief Executive Officer Stephen Bird explained: “Amimon is the technology of choice for wireless equipment used in the cine market. This acquisition opens up the exciting opportunity for Vitec to drive growth by taking wireless technology into adjacent markets, developing innovative new products to give our customers greater flexibility in image capture and content creation.

“We know the business well, use their technology in our market-leading Teradek and SmallHD products, and we are uniquely placed to access cost synergies through integration with our existing capabilities. As well as accelerating the group’s stated objective to achieve mid-teen operating margins, the acquisition is expected to enhance earnings per share from 2019.”

Amimon provides the chipsets for real-time wireless video transmission used in Teradek’s wireless camera/bonded cellular products.  The Amimon relationship extends to supplying wireless video transmissions capabilities to other products in Vitec’s Creative Solutions division.

Vitec is planning to integrate Amimon into its Creative Solutions business, which encompasses the activities of the Offhollywood, Paralinx, SmallHD, VitecEV, and Wooden Camera brands across product offerings for video transmission, monitors, lens control systems, and camera accessories.