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Barco acquires High End Systems, Inc., further strengthening
its leadership position in the Events market
June 10, 2008
Source: Barco
Barco announces the
acquisition of High End Systems, Inc., a global technology
provider of automated luminaires, digital lighting and lighting
controls. Based in Austin, Texas, High End Systems employs
156 people and is a profitable company with USD 44 million
sales in 2007. With the merging of two strong industry players,
this acquisition reinforces Barco's leadership position in
the fast converging video and lighting segments. The total
value of the transaction is USD 55 million, which implies
an EBITDA multiple of around 8 on the past 12 months. The
impact on 2008 EPS is estimated to be about neutral due to
the required IFRS restatements.
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.
The acquisition provides Barco also with
an additional patent portfolio in the digital lighting market,
along with increased distribution channels and product offerings
worldwide. The acquisition further strengthens Barco's position
in North America, another strategic goal, and will create
an opportunity to strengthen its natural hedging over time
as the High End Systems product portfolio will be further
rolled out globally.
High End Systems, Inc. was majority
owned by Generation Partners, a US private equity firm (www.generation.com).
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