ZetaDisplay has acquired ProntoTV AS in Norway for NOK 75 million, ProntoTV is claimed to be the largest supplier of Digital Signage in Norway.
The purchase price of NOK 75 million was made on a “debt-free basis” plus an earnings-based supplemental purchase price in a maximum amount of NOK 25 million which will be paid out at the beginning of 2018.
In 2015, ProntoTV had sales of approximately NOK 50.7 million with a positive EBITDA of NOK 11.6 million and operating earnings of NOK 8.6 million.
The acquisition is being financed through a private placement of units in the amount of SEK 50 million together with debt financing amounting to SEK 30 million, totalling approximately SEK 80 million – we note that ZetaDisplay is entitled to make payment of SEK 8 million of the purchase price in the form of ordinary shares in ZetaDisplay.
Leif Liljebrunn, CEO of ZetaDisplay told us “The acquisition of ProntoTV is in line with ZetaDisplay’s plan for growth which calls for strong growth with profitability. With ProntoTV’s strong position in digital communications in public spaces and the transportation sector, we are also broadening our range of products with new verticals which we will offer to customers on several markets in Europe. Through the acquisition, ZetaDisplay is creating a corporate group which continues its journey towards growth with the aim of becoming a profitable and leading supplier in Europe of Digital Signage”.
ZetaDisplay will also carry out a rights issue of units in the amount of SEK 10 million on the same terms and conditions as those applicable to the private placement.
Ola Sæverås, a partner at ProntoTV told us “For over 15 years, ProntoTV has been building up a strong position on the Norwegian market with a strong range of products offered to a broad customer base. It is in the best interests of both ProntoTV and our customers to consolidate two strong companies with a unique range of products in order to develop into an even stronger full-service supplier with an international presence. Together with ZetaDisplay, this will become reality and we will be able to offer complete solutions at the cutting edge of technology to our existing and new customers”.
ProntoTV is claimed to be Norway’s largest and leading supplier of Digital Signage with over 15 years of experience in the industry and some 20 employees. The company enjoys a strong position in retail trade and a leading position in digital communications in public spaces where the company has made extensive installations for Flytoget in Norway, among others. ProntoTV has a stable business with skilled staff and their technical solution is developed with a strong focus on stability and scalability.
Fredersen Advokatbyrå is the legal advisor to ZetaDisplay in conjunction with the acquisition.
Alpha Corporate Finance and Aabo-Evensen & Co Law Firm have assisted Pronto Holding AS.