Nordland Systems Acquired By @ZetaDisplayPubl

Russ Curry, Ministry of New Media

ZetaDisplay AB (publ) (Nasdaq Stockholm: ZETA) has acquired NORDLAND systems GmbH with preliminary net sales for 2020 of SEK 78.4 million, SaaS revenues of SEK 16.4 million and an EBITDA of SEK 6.4 million.

ZetaDisplay CEO Per Mandorf said “We have set our eyes on the German market for a while. Germany is the single largest European market, and we were looking for a leading player with a strong market position. NORDLAND systems has a strong standing paired with an attractive customer portfolio matching our capabilities to serve”.

We are told that Nordland concluded a strong growth in 2020 with several larger project deliveries. The company has an annual SaaS revenue running rate in the range of 25-30%. The acquisition is a decisive step for ZetaDisplay towards reaching its financial targets for 2022 of 200 MSEK in SaaS revenues, currently at SEK 160.3 million. NORDLAND systems GmbH is a leading German integrator and will be part of ZetaDisplay with effect from 4 March 2021.

On a proforma basis, ZetaDisplay shows annualized nets sales of SEK 444.6 million, an EBITDA of SEK 44.8 million and SaaS revenues of SEK 176.7 million equaling to 39.8% of net sales. “We are proactively driving the consolidation in the European market for Digital Signage. We are the leading player in the Nordics and number 2 in Europe. The entry to the German market broadens our platform to fulfil our growth ambitions, both organically and through further acquisitions”, comments Per Mandorf.

NORDLAND systems Managing Director Thomas Käselau said “We made a strategic decision to secure our market position by teaming up with an international experienced full-service partner. We scanned the market and arrived at ZetaDisplay as ideal partner combining a similar entrepreneurial culture and values as well an appealing customer portfolio with an attractive concepts and software offer”.

ZetaDisplay AB has acquired all shares in NORDLAND systems GmbH against a cash payment of SEK 37.7 Million on a debt free basis. If certain defined performance thresholds are achieved during 2021 and 2022, a maximum additional consideration of approximately SEK 28.4 million could be paid. ZetaDisplay has the right to pay the entire amount of the additional consideration in the form of ordinary shares in ZetaDisplay AB. The acquisition is financed through available cash.


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