(Alliance News) - Amino Technologies PLC on Monday said it has acquired an 87% stake in 24i Media for a total consideration of EUR21.4 million.
24i provides apps for TV and streaming devices. It generated EUR7.1 million in revenue in 2018 and is expected to deliver growth in recurring revenue of 35% in 2019.
Amino said it will pay initial consideration of EUR19.3 million, comprising EUR16 million in cash and EUR3.3 million in its shares. Deferred cash consideration will total EUR2.1 million. Including debt, the deal gives 24i an enterprise value of EUR27.5 million.
What's more, following a reorganisation of 24i, concurrent to Amino's acquisition, Amino's ownership rises to 92% of the issued share capital of 24i, with the balance of 8% owned by founders, it said. This reorganisation is comprised of a EUR5 million recapitalisation of 24i, to be used for working capital purposes, and the transfer of 100% of the share capital of Amino Communications Oy to an enlarged 24i.
The 24i founders have been granted a put option to sell the remaining 8% of 24i to Amino on the second anniversary of the transaction, in return for Amino shares or for cash.
The AIM-listed TV technology provider said the acquisition is expected to be earnings accretive in first full year of ownership.
"We are delighted to welcome 24i to Amino, as part of our planned acceleration in strategy in driving the company in the growing online video sector," said Amino Non-Executive Chair Karen Bach.
Amino shares were trading 0.8% higher on Monday in London at 120.00 pence each, giving the company a market capitalisation of GBP87.4 million.
