Buoyant Amino to acquire Entone for $73 million
DetailsEditor | 21 July 2015
As it released strong half-yearly results, UK IPTV, online TV and in-home multimedia distribution provider Amino Technologies is to buy out US rival Entone in a deal valued at £46.7 million ($73.0 million).
The deal gives Amino access to Entone's broadcast hybrid TV and connected home solutions which see use in the US IPTV market as well as 150 global customers. In addition to increasing footprint and scale, the deal will garner anticipated EBIT synergies of approximately £1 million in first full year of ownership as well as supply chain enhancement and economies of scale that will lead to enhanced operational performance for the enlarged group.
Entone had revenues of $43.4 million in the fiscal year ended 30 June 2014, up $14.2 million on the same quarter in 2013. In the 11-month period to 31 May 2015, Entone had revenues of $46.7 million and EBITDA of $5.1 million (unaudited management accounts). As at 31 May 2015, Entone had net cash of $12.0 million and net assets of $15.9 million. Amino expects the acquisition to be 'significantly earnings accretive in first full year of ownership (FY2016).
"The proposed acquisition of Entone has the potential to transform our business and broaden our capabilities and market reach globally across IPTV, hybrid broadcast and a range of connected home solutions," commented Amino chief executive Donald McGarva. "It also aligns closely with our recent acquisition of cloud-TV platform provider Booxmedia in enabling us to meet the evolving needs of customers across a range of markets as they transition to cloud-based IP-driven multiscreen entertainment delivery. We anticipate a number of synergies between the two companies and expect the proposed acquisition to be earnings enhancing in the first full year of combined operations."
Added Entone CEO Steve McKay: "Bringing together Amino and Entone would create a significant new presence in the pay-TV market with solutions and skill sets that are highly complementary. We share a very similar vision as to how our industry is changing and the kinds of solutions that are required to address both existing and new customers."