Further to the EK3 rumour …
June 17, 2009 by Dave Haynes
I posted the other day on how the UK-based Daily DOOH blog put up a piece saying the word on the street is that London, Ontario-based EK3 is for sale. I noted how it was causing some buzz here at Infocomm.
I was told by someone who should know that it ain’t so, and even had an internal memo that has been sent around to that effect. But I have now also seen the actual investment offering, via Daily Dooh, and while it does not actually say it is EK3, it’s EK3.
It lists clients like Tim Hortons, Walmart and Atlantic Lottery, which are all clients or venues their platform is in. The circular, from a San Diego M and A specialist, says the company is almost EBITDA positive, and had what looks like a pretty good year in terms of revenue, and 2007 and 8 weren’t bad either. EK3 has 61 on staff. The actual numbers are there for anyone to read, but I’m not going post them as the company is not a public one and is undoubtedly unhappy this circular is getting wider distribution than planned.
There are some pretty boastful statements in the circular about dominating the market, and so on, but that’s just spin.
It will be very interesting to see what happens with this. There are a whole bunch of companies out there who would welcome a buyer, and I doubt the multiple on revenues these guys would like to sell for will hold. The jewel in the EK3 crown is the work with Timmie’s, as the screen and PC set-up is, I am told, baked right into the new build of stores in the cult-like Canuck donut chain. The problem is the Walmart deal via Shopcast, which is a massive CAPEX drain and is not exactly a slam-dunk when it comes to ad sales.