Vizrt Ltd. announced today that it has reached a definitive purchase agreement with CCI Europe A/S concerning the sale of 100% of the outstanding shares of Escenic AS.
Bergen, Norway, November 13, 2013, Vizrt Ltd. (Oslo Main List: VIZ).
Under the terms of the agreement, CCI will acquire its stake in Escenic in three tranches. The first tranche, representing 51% of the share capital in Escenic, will be acquired for a consideration of USD 2 million. Transfer of the second tranche of 24.5% of the share capital of Escenic AS will be completed on December 31, 2013 for a consideration of up to USD 1 million, based on the turnover for the financial year 2013. Transfer of the remaining 24.5% is to be completed on December 31, 2014 for a consideration of up to USD 1 million, based on the turnover for the financial year 2014.
The transaction is expected to result in a capital loss for Vizrt, estimated at USD 0.5 million. Following the transaction Vizrt revenue breakdown will include BG and MAM revenues only. The Escenic related financial results will be presented in a separate line item as discontinued operation in the Vizrt consolidated financial statements.
CCI, part of the Stibo Group, is a provider of editorial and advertising solutions for multimedia news environments, and a long time distributor of Escenic products. CCI and Vizrt have been strategic partners for the past six years, and have signed an agreement that allows Vizrt to continue selling Escenic products as an integral part of its overall solutions offering.
Martin Burkhalter, CEO of Vizrt, stated, "We are pleased with the signing of this agreement. We are convinced of the importance of the Escenic product range for our customers, and we will continue to provide fully integrated solutions, which form an important part of our sales strategy. We will continue to meet current and future challenges and opportunities that our customers are facing in the implementation of their multiplatform distribution strategy.Considering the dynamics in Escenic's core markets, we believe that CCI, which is highly focused on the online market place, provides a great platform for Escenic to ensure future growth."
Both companies are committed to ensure that current and potential Escenic and Vizrt customers will continue to receive the highest level of service.
Dan Korsgaard, CEO of CCI, stated, "CCI and Vizrt have enjoyed a great cooperation during the last 6 years, and we have been able to provide the best of breed solutions to the news industry as a direct result of this partnership. The latest example is the corporate-wide CCI NewsGate editorial and Escenic online solution to McClatchy in the US. This acquisition is a natural next step in the close cooperation between our companies, and it adds a tremendous amount of domain expertise to all of us".
"For CCI customers this offers a complete publishing solution provided by a single vendor. For Escenic-only customers we will not only continue to offer Escenic as a standalone system, but also offer the additional benefit of being serviced by a larger professional services organization" Korsgaard continues.
Vizrt and CCI have also agreed that CCI will sell and implement the Viz Media Engine (VME) video solution, further cementing the strong relationship between the two companies.
Escenic AS, acquired by Vizrt in July 2008, is a leading provider of online publishing solutions, based in Oslo, Norway and has a subsidiary Escenic Asia in Bangladesh. Escenic Oslo employs 26 employees and Escenic Asia employs 32 employees.
Escenic provides a Multi-channel and mobile ready publishing solution including the Escenic Content Engine, a high performance content management and delivery system for modern websites, the Widget Framework, with readymade building blocks, websites and a powerful front-end user interface.
Escenic customers include: Schibsted, De Telegraaf, News International, Telegraph Media Group, Trinity Mirror, SVT (Swedish TV), Axel Springer, JP/Politikens Hus, Independent, WAZ, TV2 Norway, Dallas Morning News, Infoglobo, The Hindu, The Globe and mail, RSI and many more.
CCI is provider of editorial and advertising solutions for multimedia news environments. Our CCI AdDesk, CCI NewsGate and CCI NewsDesk products are the most robust and powerful systems in the industry, and are implemented in news organizations across five continents. We provide the platform to support evolving needs of the world's largest news organizations, and scalable solutions to help growing media brands optimize their business strategies. Constant innovation and strong customer commitment remain the cornerstones of CCI's business model. CCI is part of the Stibo Group, which holds a D&B AAA rating. CCI is an Oracle Certified Partner, an Adobe Gold Solution Partner and a Vizrt (Online) Partner.