Zenterio issues SEK 115 million in new shares and prepares for an IPO

Posted On: 9th June 2014

• Zenterio AB has successfully closed an investment round that raised approx. SEK 115 million in new capital through the issue of new ordinary shares to Nordic qualified investors with most of the capital coming from Nordic institutional investors

• The capital will primarily be used to finance continued rapid growth ahead of an IPO on Nasdaq OMX Stockholm’s main market, planned for within the next 12 months

• Zenterio recently announced a breakthrough deal with Deutsche Telekom which, together with a number of other new global customers, is predicted to result in strong expansion for the company

• The company will significantly increase licensing volumes for its operating system Zenterio OS during 2014 and the subsequent year as a direct result of business deals entered within the last months

• As a next step, Zenterio sees great potential in leveraging its installed licensing base to deliver interactive services such as advertising, applications, gaming, video and music

”Zenterio has seen a large influx of new business deals with international TV-operators during the last few months. With this directed share issue, Zenterio has secured capital initially needed for an IPO within a year and to meet increased demand on the global market. We will now bring the company to positive results, expand quickly and maintain our independent market position,” says Olli-Pekka Kallasvuo, Zenterio’s Board Chairman.

How Zenterio solves the TV-operators’ biggest challenge
The operating system Zenterio OS is a standardized and independent software platform for interactive TV-services. Zenterio OS provides TV-operators with a harmonized software solution that enables them to quickly and cost-efficiently roll-out the next generation of interactive services to their Pay-TV customers. Zenterio OS is compatible with existing hardware and thus solves the TV-market’s extensive problem with a fragmented software environment, which is a main challenge for TV-operators set on developing and launching new TV-services.

Digital media consumption in the future
TV-operators today experience strongly increased competition over the consumers’ digital media consumption. To meet new consumer demand for improved interactivity and customer experience, TV-operators need to continuously increase the value of their current programing offerings in combination with offering new kinds of TV-services. As opposed to the PC- and mobile phone-markets, which are dominated by a small number of operating systems, the TV-market currently has about 100 different operating systems. The development of a market for TV applications and interactive services requires a standardization of the fragmented operating system environment. Numerous operating systems make it both expensive and complex for operators to offer new services to customers. There is therefore great market demand for independent software solutions that are compatible with all interactive-TVs and set-top-boxes.

Today there are about 650 million households worldwide with a Pay-TV subscription, which constitute the base for Zenterio’s potential market. This market is growing rapidly as the world transitions from analogue to digital TV-broadcasting and as more and more households get connected to the Internet, both of which create new possibilities for Pay-TV solutions. The market for TV-operating systems is therefore not much smaller than the equivalent market for PCs.

Pareto Securities AB and Gernandt & Danielsson Advokatbyrå have provided financial and legal advice (respectively) to Zenterio during the targeted investment round.

The board of directors of Zenterio has resolved on a directed issue of new ordinary shares to Swedish and Nordic qualified investors pursuant to the authorization given by the annual general meeting on 30 May 2013. The issue price was decided, through a so called book building, to 18.50 SEK per ordinary share, which means that Zenterio is provided with approximately 115 MSEK before issue costs. The reason for deviating from the shareholders’ preferential rights is to raise necessary capital to enable a continued quick expansion. Through the share issue the number of ordinary shares in Zenterio increases by 6,216,218 from 33,518,029 to 39,734,247 (out of a total amount of 44,778,135 shares). The new issued ordinary shares are equivalent to approximately 13.9% of the total number of shares and votes in Zenterio.

For more information, please contact Daniel Harju, +46 70-432 3265, daniel.harju@angseliusronn.se


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