Based in Austin, Texas, High End Systems employs 156 people and is a profitable company with USD 44m sales in 2007. The total value of the transaction is USD 55m, which implies an EBITDA (earnings before interest, taxation, depreciation, amortisation) multiple of around eight on the past 12 months. The impact on 2008 EPS (earnings per share) is estimated to be about neutral due to the required IFRS (International Financial Reporting Standards) restatements.
Barco's statement says: "Eighty percent of High End Systems' sales are realized in the Events (Rental & Staging) market, which makes it a perfect match for Barco. Today, Barco is already the leader in four product areas of this market with its LED video displays, its large venue projectors, Creative LED products and a full range of Image Processing products. High End Systems will be fully integrated into Barco's Media and Entertainment division."
"With the growing convergence of lighting and video technologies, the acquisition of High End Systems is a merger of two strong industry players and as a combined force it will hold a leading position in this converged digital video and lighting space, enabling further growth. This is fully in line with the strategic goal of enlarging Barco's presence in each of the key markets it is active in."
Stephan Paridaen, president of Barco's Media and Entertainment division, states: "We are proud and excited about joining forces with the leading player in the digital lighting market. High End's differentiated product line-up and recent product introductions are clearly proof of their market-led vision and strong R&D focus. We look forward to introducing many new and exciting products into the converged lighting/video space together."
"The acquisition is a great outcome for the employees of High End Systems and we are confident that the combined creativity and customer focus of Barco and High End Systems will deliver superior technology for the global entertainment markets," said Merritt Belisle, chairman of High End Systems Inc.
(Lee Baldock)
