Business
Acquisition and Trading Update
Acquisition and Trading Update.
About this update from Videndum Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4730S\n Vitec Group PLC (The)\n 16 November 2021\n \n \n \n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.\n \n \n \n \n \n 16 November 2021\n \n The Vitec Group plc\n Acquisition and Trading Update\n Highly complementary, bolt-on acquisition in a faster-growing segment\n The Vitec Group plc (\"Vitec\" or \"the Group\"), the international provider of premium branded hardware products and software solutions to the growing content creation market, announces an acquisition for our Imaging Solutions Division and a brief update on the Group's trading for the four months to end of 31 October 2021 and FY 2021 outlook.\n Key highlights\n \n \n \n \n · \n \n \n \n Agreed to acquire Savage for up to $57.3 million in cash, including retention, transaction and financing costs. Completion is expected by the end of November 2021.\n \n \n \n \n \n · \n \n \n \n Savage is a global market leader in backgrounds for the growing professional studio photographic market.\n \n \n \n \n \n · \n \n \n \n Vitec is uniquely placed to drive commercial synergies and help the Savage business grow.\n \n \n \n \n \n · \n \n \n \n Acquisition enhances Group adjusted operating margin, is accretive to adjusted earnings per share from FY 2022 and its return on investment will exceed Vitec's cost of capital from FY 2023 onwards.\n \n \n \n \n \n · \n \n \n \n For the existing Group, pre-Savage, FY 2021 adjusted profit before tax is now expected to be slightly above the current market consensus, despite some uncertainties, primarily around component shortages.\n \n \n \n \n \n \n \n Stephen Bird, Group Chief Executive, commented:\n \n \n \"A key part of the Group's strategy is to invest in businesses exposed to faster-growing segments of the content creation market. Savage gives the Group a leading position in the growing global backgrounds market, which is the largest consumables product used by professional studio photographers. This gives us more frequent contact with our customers as well as more of a regular repeat purchase revenue stream. \n \n \n \"Vitec is the natural home for this well-respected brand as we know the market and their business extremely wel...