Sweden’s ZetaDisplay Buys Up Norwegian Competitor ProntoTV

zeta-install

The Swedish digital signage firm ZetaDisplay announced today it has completed a deal to acquire ProntoTV AS, which is touted as the largest digital signage supplier in neighbouring Norway.

The company paid NOK 75 million (about$9.10 million USD) on a “debt-free basis” plus an earnings-based supplemental purchase price in a maximum amount of NOK 25 million, which the announcement says will be paid out at the beginning of 2018.

ZD-logo_black_transparentIn a press release, Zeta says in 2015, ProntoTV had sales of approximately NOK 50.7 million with a positive EBITDA of NOK 11.6 million and operating earnings of NOK 8.6 million.

If you want to do all the math, $1 USD = 8.2416 Norwegian crowns

The acquisition is being financed through a private placement of units in the amount of SEK 50million together with debt financing amounting to SEK 30 million, totalling approximately SEK 80 million. ZetaDisplay is entitled to make payment of SEK 8 million of the purchase price in the form of ordinary shares in ZetaDisplay.   In addition, the board of directors intends to resolve to carry out a rights issue of units in the amount of SEK 10 million on the same terms and conditions as those applicable to the private placement.

The acquisition is contingent, among other things, on full financing being obtainable.

The deal  helps build ZetaDisplay’s ambitions of being a major European supplier. Assuming the deal closes, they get ProntoTV’s customer base, which includes Reitan Group, Sparebank1, JCDecaux, Avinor, Norway Post, Vita and Boots Pharmacy.

From the press release:

ZetaDisplay is currently a leading supplier to major chains in the retail trade and service industry. The company has over 50 employees and sales offices in Sweden, Denmark, Norway, Finland, Estonia, and the Netherlands. ZetaDisplay has a large customer base on the European market and its customers include Mercedes-Benz, Volkswagen, PostNord, EuroCash, Stockmann, HEMA, Hesburger, Kesko, Alko, Vianor, and MIO, etc.

ProntoTV is Norway’s largest and leading supplier of Digital Signage with over 15 years of experience in the industry and some 20 employees. The company enjoys a strong position in retail trade and a leading position in digital communications in public spaces where the company has made extensive installations for Flytoget in Norway, among others. ProntoTV has a stable business with skilled staff and their technical solution is developed with a strong focus on stability and scalability.

Last year, Zeta acquired a Finnish firm, Marketmedia. Presumably, totally, they now look at what’s shaking in Denmark.

 

Dave Haynes

Dave Haynes

Editor/Founder at Sixteen:Nine
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for more than a decade. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He's based near Toronto.
Dave Haynes

@sixteennine

Decade-old blog about digital signage and related tech, written by industry consultant and shit-disturber Dave Haynes.
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