STOCKHOLM, Sweden, Nov. 1, 2005 (PRIMEZONE) -- Observer has signed an agreement to acquire Multivision, a broadcast monitoring company headquartered in Oakland, California.
Multivision plays a leading role in the development of digital broadcast monitoring, delivery and analysis of broadcast content in the American market. The company has a yearly turnover of approximately USD 12 million and covers more than 160 local and regional markets.
The acquisition strengthens Observer's market position in the U.S. and provides Observer with technology, competence and increased sales capacity. The offering to current clients is strengthened and Multivision's client base gains access to a broader range of services.
"Multivision shows strong growth and has continuously improved their profit over the past years. The acquisition marks a step in the efforts to further develop our offering and take advantage of the potential in the world's largest market," says Observer's CEO Robert Lundberg.
Financing and earnings impact
The purchase price of USD 25 million will be paid in cash and financed through a combination of liquid assets and available credit. In order to remain financially prepared for further expansion, Observer's board of directors intends to finance a portion of the acquisition with the proceeds of a new share issue directed to a limited number of Swedish and international institutional investors. The new issue of up to 4 million shares will be executed within the framework of the authorization of the Annual General Meeting in April 2005.
The acquisition is expected to have a positive impact on Observer's earnings per share and cash flow as of the date of the acquisition. Synergies will be created by integrating Multivision with the Group's U.S. subsidiary, Bacon's. The integration will lead to substantial profit improvements as well as increased margins in Bacon's.
The aim is to consolidate Multivision in Observer's accounts as of November 2005.
Multivision is sold by the company's current CEO, Babak Farahi, with family and employees. Babak Farahi, will join the management of Observer's US operations.
Observer is the world leader in media monitoring and communication evaluation. With Observer's services, clients can identify the right target groups, distribute information, and monitor and analyze their media coverage.
Observer AB is quoted on the Attract40 segment of Stockholmsborsen's O-list and has around 22,000 shareholders. The company has around 2,600 employees and a turnover of slightly over SEK 1.6 billion in 2004. Observer operates in the U.S., U.K., Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia and Lithuania.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id=147009&fn=wkr0001.pdf pdf