Miranda Technologies Acquires OmniBus for $46.7 Million
MONTREAL, CANADA, and LOUGHBOROUGH, U.K.:
Miranda Technologies has acquired OmniBus Systems for $46.7 million, the buyer said today. Miranda bought all out the outstanding shares of the privately owned media management specialist from Palamon Capital Partners, a European private equity firm. Miranda said the all-cash deal was valued at C$48.7 million (US$46.7 million in current exchange rates). The deal will be financed equally with cash on hand and an existing credit facility.
OmniBus is based in Loughborough and posted revenues of approximately C$24 million (US $23 million) for the trailing last 12 months ending June 30 2010. The company’s flagship product is an IT-based playout and automation solution dubbed “iTX.” Clients include ABC, Ascent Media, Astro, AT&T, BBC, Chellomedia, Corus, Direct TV, Discovery, E!, FOX, SkyPerfect TV, Starz, and Turner.
“Over the past four years, iTX has been adopted by many of the world’s largest and most successful broadcasters to lower costs and streamline their operations,” said Miranda chief Strath Goodship in a statement. “The addition of OmniBus, and specifically iTX, allows Miranda to uniquely offer the complete range of playout solutions, from traditional hardware to a fully software-based environment.”
From Mike Oldham, CEO of OmniBus: “We’ll also gain more extensive worldwide sales and support, enabling us to further strengthen our customer service.”
The announcement did not mention the integration strategy of the two companies, e.g., whether there would be layoffs or who’s role might change. Omnibus has 120 employees in Loughborough and Denver, the U.S. headquarters. Miranda employs around 570 people in Montreal and at facilities in Wallingford, U.K., Grass Valley, Calif.; Paris, Tokyo, Beijing, Hong Kong, Dubai and Zaltbommel, Netherlands.
The markets had not yet opened when Miranda announced the acquisition of OmniBus. Shares of the company closed Sept. 8 at C$5.15 (US$4.93). The company reported revenues of C$32.1 million for the second quarter ending June 30, 2010, up 3 percent from C$31.1 million in 2009, excluding impact of foreigkn exchange rates. Net income increased 173 percent to C$3.5 million, or 15 cents Canadian a share versus C$1.3 million or 6 cents Canadian a share in 2Q09. Miranda ended the quarter with cash and equivalents of C$30.8 million and long-term debt of C$3.3 million.
-- Deborah D. McAdams