Sweden, 2017-09-12 08:54 CEST (GLOBE NEWSWIRE) --
Summary
ZetaDisplay 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, DnB, etc.
- 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.
- LiveQube is expected to report strong growth with increased profitability over the course of the coming years.
- The acquisition can be seen as a first step towards increasing and broadening the range of products and services offered to shops and public environments on established markets.
- ZetaDisplay sees great synergies with LiveQube’s services on several markets in Europe.
- The acquisition is being financed with liquid funds and loans.
Background to the acquisition of LiveQube
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.
The acquisition of LiveQube is a natural step for ZetaDisplay in offering customers more services which enhance their experience in visits to shops or public environments. In commercial terms, this creates good possibilities to increase sales to existing customers since they are already using ZetaDisplay’s platform.
It is ZetaDisplay’s ambition to continue its journey of growth and to actively participate in the current consolidation of the industry in Europe. This can lead to ZetaDisplay strengthening its position further with several acquisitions on the local market where the company is established, acquisitions outside of the Nordic region, or acquisitions, as in the case with LiveQube, where the range of services is broadened and which can provide scalable services and synergies with other countries.
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.
LiveQube’s customer base includes Burger King, 7-eleven, Nordic Choice Hotels, DnB, etc.
“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” says Leif Liljebrunn, CEO of ZetaDisplay.
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
"LiveQube has built up a strong position on the Norwegian market with an attractive range of products and services offered to a broad customer base. Our products and services are highly fitted to the times where streamed music has a strong underlying growth. It is in the interests of both LiveQube as well as our customers to be able to offer a more complete range of products and services on a significantly broader market” says Trond G. Christensen, Chairman of the Board and co-founder of LiveQube
The implementation of the acquisition of LiveQube
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.
Financing of the acquisition of LiveQube
The acquisition is being financed with liquid funds and loans. The acquisition is contingent on full financing being obtained.
Advisors
Fredersen Advokatbyrå and Advokatfirmaet Schjødt AS are the legal advisers to ZetaDisplay in conjunction with the acquisition.
If you have any questions, please contact:
ZetaDisplay AB (publ)
CEO Leif Liljebrunn
Tel: +46 70 845 80 52
Email: leif.liljebrunn@zetadisplay.com
The information contained in this press release is the type of information which ZetaDisplay is obligated to publish under the Market Abuse Regulation. The information was caused to be published by Leif Liljebrunn on 12 September 2017 at 8:54 AM.
About ZetaDisplay
ZetaDisplay is a leading supplier of Digital Signage to major retail chains and the service industry on the European market.
Its headquarters are located in Sweden with sales offices in Denmark, Norway, Finland, Estonia and the Netherlands. Since April 2011, the company’s shares have been traded on NASDAQ First North Premier under the ticker name ZETA. The Certified Adviser is Erik Penser Bankaktiebolag. More information is available at http://www.zetadisplay.com.
About Digital Signage and multichannel communications
ZetaDisplay defines Digital Signage as systems for advertising, profiling and store communications which convey sound, images and films at shops and in public environments. Solutions based on digital screens are a large part of the market, but the development is towards utilizing ever more digital channels in order to communicate offers and other information to customers. This involves solutions which are integrated with social media and websites, as well as applications for smart mobile telephones and tablets which create interactivity with the customer. The development is also towards integrating solutions with the cashier systems of the store chains for automatic price updates and automatic replacement of messages on the digital screens.