French technology company Netgem is to acquire DVD rental and video-on-demand specialist Videofutur.
Netgem has made a cash offer for 100% of Videofutur’s stock and convertible bonds that has secured the approval of the boards of both companies.
Netgem said its objective was to return to growth in its home market by focusing on the opportunity presented by connected TV, allowing it to extract more value from its domestic presence and technology assets.
The acquisition will give Netgem an entry into the connected TV market in France. The company said that in addition to Videofutur’s own network it would enable it to make a connected TV offering that could be marketed to multi-service operators in France. Outside the French market, the cloud platform developed by Videofutur for multiscreen distribution will be integrated with Netgem’s own offering.
The terms of the Netgem offer for Videofutur wil secure it a minimum of 77.5% of the latter’s share capital and voting rights. Netgem will pay a maximum of EUR5.9 million for the company.