18 Sep 2018 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
The Vitec Group plc
18 September 2018
ACQUISITION
Vitec enters adjacent audio capture market
with the acquisition of Rycote Microphone Holdings Ltd.
The Vitec Group plc ("Vitec" or the "Group"), the international provider of products and solutions to the Broadcast and Photographic markets, announces that it has acquired Rycote Microphone Holdings Ltd. ("Rycote"), for up to £8.5 million in cash.
Based in Stroud, UK, Rycote is a highly respected, market-leading brand, trusted by creative professionals, and a manufacturer of advanced noise reduction equipment for the audio capture market. Audio capture is an integral element in the creation of high quality videos and Vitec's existing customers, whether Broadcasters, Videographers or Independent Content Creators, already buy audio products. There are opportunities across all three of Vitec's divisions to sell Rycote products in conjunction with SmallHD monitors, Teradek transmitters, Flowtech tripods, Anton/Bauer batteries, JOBY GorillaPods and Manfrotto products.
Rycote's unaudited results for the year to 30 April 2018 recorded £3.1 million revenue, with adjusted EBITDA of £0.8 million.
Rycote will become part of Vitec's Creative Solutions Division, led by Nicol Verheem. Simon Davies, Rycote's Managing Director, will remain with the company post acquisition. The acquisition is in line with Vitec's strategy to enter adjacent markets.
Under the terms of the acquisition, the initial cash consideration is £6.0 million on a debt/cash free basis, including deal costs. Up to a further £2.5 million cash consideration will be payable dependent on post-acquisition performance.
The acquisition is expected to be marginally accretive to earnings in 2019.
FY2018 Outlook
We now anticipate delivering a full year 2018 performance slightly ahead of our previous expectations, given further FX benefit and revised trading expectations for the remainder of the year ending 31 December 2018.
Stephen Bird, Group Chief Executive of Vitec, commented:
"I am delighted to welcome the Rycote team to the Group.
"Vitec operates primarily in the video production market and this acquisition opens up the opportunity for us to enter the growing audio capture market, adding innovative and complementary products for our customers, and creating additional value for our shareholders.
"Rycote has exciting product development plans that will add real value to Vitec and our customers, and we look forward to developing the business."
The Vitec Group plc Capital Markets Day
On 20 September 2018, Vitec will be hosting a Capital Markets Day at its new facility in Bury St Edmunds, the head office for Vitec's Production Solutions Division.
An overview of the strategy, performance and product development highlights of our Production Solutions and Creative Solutions Divisions will be covered.
Copies of the presentations will be made available on the Group's website after the event. No material new financial information will be disclosed.
-Ends-
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive
Kath Kearney-Croft, Group Finance Director
Telephone: 020 8332 4600
MHP Communications
Tim Rowntree
Ollie Hoare
Telephone: 020 3128 8771
A snapshot of The Vitec Group plc
Vitec is a leading global provider of premium branded products and solutions to the fast moving and growing "image capture and content creation" market.
Vitec's customers include broadcasters, independent content creators, photographers and enterprises, and our activities comprise: design, manufacture and distribution of high performance products and solutions including camera supports, camera mounted electronic accessories, robotic camera systems, prompters, LED lights, mobile power, monitors and bags.
We employ around 1,700 people across the world in eleven different countries and are organised in three Divisions: Imaging Solutions, Production Solutions and Creative Solutions.
The Vitec Group plc is listed on the London Stock Exchange with 2017 revenue from continuing and discontinued operations of £378.1 million.
More information can be found at: www.vitecgroup.com.
About Rycote
Renowned for its innovative, problem-solving designs for over 45 years, Rycote has become a synonym for microphone windshields the world over, playing a leading role in this industry.
Forming an essential part of broadcast and recording technology at the critical point of audio capture, Rycote products are trusted by audio professionals to help them deliver great sound, time after time, and in the most demanding of conditions.
Rycote windshields and microphone suspension systems are designed for capturing audio, whilst at the same time preventing wind and handling noise and preserving the microphone's natural frequency response. Designed, developed and manufactured in-house, the company's designs were honoured with a Technical Achievement Award from the Academy of Motion Picture Arts and Sciences in 2000, and shortlisted for another in 2011. Rycote continues to apply its years of engineering knowledge to create the most complete line of specialised tools for wind, shock and handling noise protection that exists today.
More information can be found at: www.rycote.com
LEI number: 2138007H5DQ4X8YOCF14