Sweden-based TV technology provider Zenterio has acquired software specialist Systemagic for approximately SEK50 million (€5.25 million) and has issued new shares to a total of approximately SEK80 million.
Linköping-based Systemagic develops IPTV platforms, interactive TV services, the user experience and applications including video, music and advertising. The company has worked in co-operation with Ericsson, Motorola/Arris, Spotify, Samsung, Altibox, Com Hem, and others. The acquisition expands Zenterio’s operations in Linköping with approximately 30 system developers and the company’s total number of employees will now amount to 180. Through the acquisition Systemagic becomes a subsidiary of Zenterio and will continue to market and deliver to external costumers as well as to Zenterio.
Systemagic posted revenues of approximately SEK45 million this ,with an EBITDA margin of 20%. Zenterio paid for the acquisition in a mix of cash and shares.
Zenterio has has completed two share issues in a total aggregate amount of approximately SEK 80 million, a move initially announced in November.
The money raised from the share issue will be used to finance the company’s continued expansion as well as to finance the acquisition of Systemagic.
“We have seen that some of our distribution channels are increasing more rapidly than we could have foreseen. This applies, for example, to the OEM-side and within certain customer segments such as IPTV-operators. In order to be able to deliver at an ever increasing rate we have to make investments in our capacity and the acquisition of Systemagic is part of this. The capital raising and our acquisitions will secure our delivery capacity and our continued success going forward,” said Robin Rutili, CEO of Zenterio.
“We see a significant demand from operators for interactive TV-services and applications as they need to create new sources of income and seek to offer their customers an improved viewer experience. With Systemagic’s expertise in interactive TV-services Zenterio both strengthens and broadens its offer to the operators and at the same time we can meet their increased demand.”