ZetaDisplay AB (publ) (Nasdaq Stockholm: ZETA) has acquired Gauddi BV with net sales of SEK 49 million (2018), recurring revenues (SaaS) of 41% and an EBITDA of SEK 8,2 million. Gauddi will be integrated into ZetaDisplay BV with effect from October 10, 2019.
The transaction includes an upfront payment in cash of SEK 52,7 million and an additional performance consideration based on full year results for 2019 of up to SEK 18,4 million. The acquisition is financed through available cash. On a proforma basis, ZetaDisplay shows after the finalized acquisition annualized nets sales of SEK 488 million, an EBITDA of SEK 56 million and contracted services of SEK 143 million equaling to 29% of net sales.
Per Mandorf, CEO and President of ZetaDisplay “We are in a market with strong underlying growth where increased customer demands on international footprint and managing complex Digital Signage solutions trigger a consolidation. Gauddi represents a vital complement to our existing operations. We aim for a scalable integration and operation as we share similar software and a complementary customer base. This will create direct value to our customer base and enhance our market position. We have a strong financial position as consequence of the recent launch of a bond loan of SEK 300 million and aim to strengthen our leading position on the European market, where further acquisitions are part of this strategy”.
ZetaDisplay BV has acquired all shares in Gauddi BV against a cash payment. If certain defined performance thresholds are achieved for the full year 2019, a maximum additional purchase price of approximately SEK 18,4 million could be paid. ZetaDisplay has the right to pay up to approximately SEK 10,8 million of the additional purchase price in the form of ordinary shares in ZetaDisplay AB.
Theo Wieckardt, CEO Gauddi BV said “ZetaDisplay BV and Gauddi BV are two companies with unique and complementary offerings. Together we can develop into a full-service provider with an increased international presence. We can offer complete digital signage solutions in the forefront of technology to existing and new customers.
Gauddi BV was founded in 1998 and claims to be the second largest supplier of Digital Signage solutions in the BeNeLux with 25 employees and sales in more than 30 countries. The company is based in Moordrecht, near Rotterdam in the Netherlands and also has an office in Baltimore, USA.
ZetaDisplay provides visual communication solutions to influence behavior in a physical store or office environment. The company is built on a profound understanding of human behavior in decision-making situations. The total offering includes concept development software programming, deployment as well as technical contracted services. ZetaDisplay is based in Malmö, Sweden. The company has annual net sales 400 MSEK and employs 140 employees at eight offices in six European countries. The company controls and maintains today more than 50 000 installations at customers on 50 markets. The share is listed on the NASDAQ OMX Stockholm Stock Exchange [ZETA].