12th Apr 2021 11:57
(Alliance News) - Vitec Group PLC will acquire two US-based firms for a total of GBP30.4 million, it said Monday.
Vitec said it expects to imminently complete the acquisition of Infiniscene Inc, a Chicago-based firm that trades as Lightstream, for USD35.0 million, about GBP26.0 million, in cash and shares. Lightstream develops cloud-based live production software to enable content creators to improve their live video streams.
Los Angeles-based LED lighting developer Quasar Science has already joined Vitec in a USD6.1 million, or GBP4.4 million, cash deal.
Vitec is based in Richmond, west London and specialises in supplying broadcast market equipment. In 2020, it recorded a pretax loss of GBP7.7 million in 2020 on revenue of GBP290.5 million. Its adjusted operating profit was GBP9.9 million.
"With Lightstream as part of the group, we will be able to address the growing demand for cloud-based content creation as well as more than doubling our recurring revenue stream," said Chief Executive Stephen Bird.
"Quasar products are highly complementary to our Litepanels brand and this acquisition will enhance our position as a leading player in the growing LED lighting market.
"These acquisitions are an excellent strategic and technological fit, have great medium-term prospects and are expected to increase our underlying revenue compound annual growth rate."
In a brief trading update Vitec also described being "increasingly confident about delivering a strong recovery in 2021."
It announced in the first quarter of 2021, ended March 31, it saw continued good trading performance, with order intake and revenue broadly in line with the same period in 2019, despite markets not being fully open.
Although it cautioned that there remains uncertainty about when markets will fully reopen, particularly production sets in the US.
Shares in Vitec were trading at 1,166.97 pence in London on Monday morning, up 1.5%. The stock is up 26% so far in 2021.
The company's 2021 AGM will be held on May 6.
By Will Paige; [email protected]
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