Zenterio is expanding its Linköping development operations via acquisition of the 27M Group in order to manage TV operators’ increased demand for the company’s interactive-TV software solution. With this deal, which was implemented on 1 September 2014 at a purchase price of SEK 37 million, Zenterio strengthens its development capacity and shortens time-to-market for its operator customers.
“The TV market is a competitive sector in which consolidation is becoming increasingly common,” says Robin Rutili, CEO of Zenterio. “We see clear need on the operators’ side for flexible, scalable TV solutions. The addition of 27M’s industry-leading expertise enables us to more quickly help our TV-operator customers offer more modern, interactive viewing experiences and solutions connecting all screens in a home. Zenterio’s solution allows for endless opportunities—enabled by the internet—to be better integrated and become natural parts of the end customers’ TV experience.”
In July, Zenterio entered a strategic partnership with Viaccess-Orca, a leading global provider of payment and distribution solutions. Through this partnership, Zenterio’s software platform is available for half of the world’s largest TV platforms. Sales via global partners have led to a sharp increase in demand for Zenterio’s independent operating system. Consequently, Zenterio’s license base is expected to expand significantly during 2H 2014.
Through the 27M Group acquisition, Zenterio strengthens its development operation in Linköping with an additional 40 system developers and now employs a total of 150 persons. In May 2014, former 27M CEO Anders Visell became Zenterio’s chief operating officer. Today, Visell manages operations at the company’s development center in Linköping.
The 27M Group, which was founded in Linköping in 2002, has been an important long-term business development partner for Zenterio. The 27M Group has extensive experience in software development, testing, and implementation for TV operators and has delivered solutions for companies such as Boxer, TiVo, and ComHem. Besides enhanced development operations, synergies will be realized on the revenue and expense sides. The 27M Group forecasts sales of about SEK 50 million in 2014 and a 10 percent EBITDA margin.
The purchase price of SEK 37 million has been paid for by an issue of 2 million shares, made in September 1 and representing a stock dilution of 4.3 percent. The total number of shares after the acquisition amounts to 46,778,135.
For more information, contact Daniel Harju, firstname.lastname@example.org / +46 70-432 3265