ZetaDisplay’s European Roll-Up Continues With Acquisition of Dutch Firm QYN

Swedish digital signage solutions provider ZetaDisplay AB is continuing its European roll-up efforts, buying what it describes as the largest and leading provider in Holland.

ZetaDisplay has done a deal to acquire all of the shares of QYN BV, for SEK 83.3 million, or about $10 million USD.

A press release says the deal is “to be paid in cash, plus payment for net cash of approximately SEK 4.4 million and a possible supplementary purchase price, not to exceed SEK 53.2 million. In order to finance the acquisition, ZetaDisplay’s board intends, in a decision taken on 25 October 2017 (as announced in a separate press release) to decide on a private placement of ordinary shares corresponding to approx. SEK 80 million, pursuant to authorisation granted by the annual general meeting on 22 May 2017.”

QYN operates throughout the Benelux region and had sales of about $6.5 million USD in 2016.

ZetaDisplay’s ambition, says the press release, is to continue to carry out acquisitions in accordance with an adopted growth strategy and to actively take part in the ongoing consolidation of the Digital Signage industry in Europe. Through the acquisition, the Company is further strengthening its position on the local market in Holland and the Benelux region, as well as on the European market. The acquisition will facilitate a broader offering and may allow for commercial scalability within the service offering.

QYN is Holland’s largest and leading supplier of Digital Signage with long experience in the industry and some thirty employees. The customer base includes, among others, ING Bank, SNS bank, PricewaterhouseCoopers (PwC), KPN, Intersport, Randstad, Total, Amsterdam RAI, Luxaflex, etc. Together with ZetaDisplay’s current presence in Holland and the Benelux region, the amalgamated operations will be in an even more leading position with a very strong customer base.

?The acquisition of QYN is in line with ZetaDisplay’s strategy of, with good profitability, taking part in the ongoing consolidation in the industry. Based on our European platform, we will continue the expansion and exploit economies of scale in order to achieve gradually higher earnings capacity and increased profitability. QYN is expected to demonstrate strong growth and contribute with continued high profitability to the group going forward,” says Leif Liljebrunn, CEO of ZetaDisplay.

The deal comes on the heels of earlier acquisitions of companies in Scandinavia.