Scisys acquires of Annova Systems GmbH

Scisys announces the conditional acquisition of Annova Systems GmbH, a provider of media software solutions, based in Munich, Germany.


- Initial acquisition consideration of €11.35m in cash

- Initial consideration to be principally funded from a new bank loan provided by Deutsche Bank

- Three-year earn-out of up to €16.48m in cash or shares subject to achievement of key commercial targets

- Leading supplier of software based editorial solutions, principally to the Northern European media sector

- Highly complementary to SCISYS' Media & Broadcast division with significant synergy benefits expected and considerable international growth opportunities for the enlarged business

- Strong customer base including public and commercial broadcasters across Europe, including the BBC under a 12 year contract

- Significant own IP content based on proprietary "best in class" OpenMedia software

- Cash-generative business with a strong order book, growing pipeline of prospects and robust revenue visibility

- Highly competent and experienced workforce

- For the year ended 31 December 2015, ANNOVA generated German GAAP revenues of €7.5m, EBIT of €1.1m and operating cashflow of €1.4m

- Acquisition expected to be strongly earnings enhancing from 2017 onwards

- Completion expected by the end of 2016