Barco
acquires High End Systems, Inc, further strengthening its leadership
position in the Events market
AV
Product News Published: 10 June 2008
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).
More details on the acquisition will be provided
with 2Q08 results on 23 July 2008.