ZetaDisplay [1] has entered into an agreement to acquire LiveQube, Norway’s largest supplier of streamed and customer-adapted music for shops and public environments. The company is active on a growing market together with others such as Spotify Business. LiveQube’s customer base includes Burger King, 7-eleven, Nordic Choice Hotels and DnB.
In 2017, LiveQube is expected to have sales of approximately MNOK 11 with EBITDA of approximately MNOK 2.8 and operating earnings of approximately MNOK 2.3. Approximately 80% of LiveQube’s sales consist of recurring revenue.
We are told that ZetaDisplay sees great synergies with LiveQube’s services in several markets in Europe. The acquisition is being financed with liquid funds and loans.
The acquisition of LiveQube means that ZetaDisplay is broadening its range of services with streamed and customer-adapted music. The service is scalable and provide synergies for other subsidiaries in the group.
LiveQube reports approximately 30% of its sales from outside of Norway. The company was founded in 2010 and has extensive experience in the industry. LiveQube has eight employees. Leif Liljebrunn, CEO of ZetaDisplay told us “The acquisition of LiveQube is in line with ZetaDisplay’s strategy to acquire companies which give us a stronger range of services with good profitability. Based on our Nordic platform, we will continue the expansion and make use of economies of scale leading to gradually higher earnings and increased profitability. With LiveQube, we have a win-win situation where both parties can offer each other’s products and services to existing and new customers”.
In 2016, LiveQube had sales of approximately MNOK 8.3 with EBITDA of MNOK 1.3, and operating earnings of MNOK 0.7. Total balance sheet assets were MNOK 6.9
The acquisition of LiveQube is taking place through the acquisition by ZetaDisplay of all of the shares in LiveQube in exchange for payment in cash of MNOK 10.1 plus compensation for net cash on account of approximately MNOK 3.8. Provided the defined threshold values regarding earnings are achieved, a supplemental purchase price is payable which can amount to a maximum of MNOK 3.9. This will be paid out in a smaller portion during the beginning of 2018 with the remainder during the beginning of 2020. Payment for the shares is anticipated to take place during the latter part of October 2017.