Amino buys Danish streaming and Pay TV firm for $6.5m
Cambridge’s Amino Technologies plc has acquired Nordija, a Danish streaming and Pay TV platform specialist, for $6.5 million.
Amino is a UK quoted software-led global media technology company that delivers modern TV experiences.
Nordija will be integrated into the Group's 24i business in a move designed to enhance and scale the group's end-to-end video streaming portfolio.
Amino says that Nordija brings high quality customers to the group including Telenor Sweden, TET (formerly Lattelecom), Swisscom Broadcast, the Danish Broadcasting Corporation (DR), WAOO, Boingo Wireless, and SETAR in the Caribbean.
Nordija delivered revenues of €3.7m ($4.5m) in FY20. It is expected to achieve growth in FY21 and the acquisition is expected to be earnings enhancing in the first full financial year of ownership.
As customers increasingly look to offload the day-to-day burden of managing and maintaining their end-to-end video platforms to expert partners like Amino and 24i, this move supports the group's 2025 strategy to address the convergence of streaming services and traditional Pay TV.
Amino’s pre-stated ambition is to triple revenues and drive recurring returns as a percentage of software revenues to 70 per cent by 2025. The acquisition immediately adds around $1.8 million annual recurring revenue.
The total consideration due of €5.3m is being funded through a mix of cash and equity.
An initial consideration of €4.6m has been paid on completion and €0.7m has been deferred, depending on whether certain targets are achieved. All equity consideration is subject to a two-year lock-up restriction.
Amino may not be finished yet in the acquisition stakes: The group continues to retain the net proceeds of the recent £9.4m equity fundraising to fund future acquisition opportunities to help meet its 2025 strategy.
CEO Donald McGarva said: “We recently launched our Amino 2025 strategy to capitalise on the convergence of streaming services and traditional Pay TV, which is where we see the greatest opportunity for growth.
“The acquisition of Nordija marks another step towards capturing this opportunity, focused on growing software and recurring revenue. Nordija is a business that we have known for a long time, one which our customers love and that shares our vision and approach.”