More news of consolidation in the digital signage sector – this time from Northern Europe.
Sweden’s ZetaDisplay has reached an agreement to buy Marketmedia Oy, which is described as the largest digital signage firm in Finland.
ZetaDisplay is picking up a firm that’s running EBITDA-positive, has a turnover of about $4 million USD, and a bunch of clients, including the Finnish national betting agency and a bunch of companies with names wholly unfamiliar to me, like Tikkurila, Starkki, Stockman and Onninen
ZetaDisplay has roughly 40 people in Sweden, as well as Denmark, Norway, Finland, Estonia and the Netherlands. Its client list includes, it says, Mercedes-Benz, Volkswagen, HEMA, TeamSportia, ICA, Hesburger, KotiPizza, Euromaster, Vianor and MIO.
“The acquisition of Marketmedia is in line with ZetaDisplay’s growth plan to ensure in the future there will be strong growth with profitability,” says Leif Liljebrunn, CEO of ZetaDisplay. “With the strong position of MARKETMEDIA in the gaming market, we are also broadening our offer with a new vertical dimension which we will offer to clients in more markets in Europe. By means of this acquisition ZetaDisplay is creating a business that is continuing its growth progress towards the goal of being a profitable leading supplier in Europe of Digital Signage.”
Curiously, Marketmedia sold for a bit more than $2 million USD, well below even 1 year’s revenue.
Says a release:
The acquisition of Marketmedia is to take place by ZetaDisplay acquiring all shares in Marketmedia by a cash payment amounting to approx. 2 M€ (approx. 18.6 MSEK). ZetaDisplay intends to finance the acquisition through debt financing via, among others, banks and other lending institutions. Payment for the shares is scheduled for March 2015.