Vector swoops to acquire ChyronHego
| 18 November 2014
The current allure of the video industry for the investor community shows no sign of abating as Vector Capital has revealed the acquisition of ChyronHego.
Vector sees Chyron as presenting a number of significant long-term opportunities in broadcast graphics creation, play-out, and real-time data visualisation. It believes that with strong capital backing the company will be well positioned to capitalise on the trends in the sports, news and live television markets.
In practice the deal will comprise a definitive merger agreement under which an affiliate of Vector will acquire all of the outstanding shares of ChyronHego common stock for $2.82 per share cash. Vector added that the purchase price represents a premium of approximately 18% over ChyronHego's average closing share price for the six months ending on 14 November 2014. The transaction is subject to customary closing conditions, including the approval by holders of two-thirds of ChyronHego's outstanding shares.
"We are very happy to announce this partnership with Vector Capital, an established global technology-oriented private equity firm that is focused on building long-term value. Our management is convinced that this is the right opportunity at the right time for ChyronHego's customers, employees and stockholders," said president & CEO Johan Apel.
Added Vector VP Nick Lukens: "We are thrilled about ChyronHego becoming part of the Vector family. Through our partnership with management, we are committed to strengthening and expanding ChyronHego's market leading product and service capabilities."