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Dealipedia - SportsMEDIA Technology Corporation acquires Information and Display Systems LLC

SportsMEDIA Technology Corporation acquires Information and Display Systems LLC

Deal Participants:
Acquiring Company: SportsMEDIA Technology Corporation View Profile Charts Homepage
Target Company: Information and Display Systems LLC View Profile Charts Homepage
Deal Financials:
 
Date:
Announced: Feb 16, 2012

PRESS RELEASE

SMT (SportsMEDIA Technology Corporation), today announced it has acquired Jacksonville, Fla.-based Information and Display Systems, LLC, (IDS), a leading global provider of technology solutions for the sports industry. This strategic acquisition merges two highly respected and established technology companies who together have more than 50 years of combined industry experience. SMT is a premier provider of live data and graphics integrations products and services to broadcasters of high-end live sports events. IDS is a premier provider of live in-stadium, event scoring, statistics and display products and services to sports organization and high-end sports event presenters.

In September of 2010, SMT raised growth capital funding from Los Angeles, Calif.-based Vicente Capital Partners (VCP) and began exploring growth through strategic acquisition. The ideal strategic partner for SMT would: (1) open new markets for SMT products and services; (2) add additional products and services to the current SMT product mix; and (3) assist SMT in extending its geographic footprint from the U.S. into Europe, Asia and Australia. In June 2011, IDS needed to recapitalize its corporate structure and was actively looking for a strategic partner. SMT and IDS began talks in the last quarter of 2011 that ultimately resulted in the IDS board approving SMT's proposal to wholly acquire IDS.

"SMT and IDS combined as one company, with its inherent synergies, will prove to be greater than the sum of the two companies apart," said SMT President and CEO Gerard J. Hall. "This will be one of those rare and elusive strategic partnerships where one plus one really does equal three."

Key characteristics of the transaction include: (1) SMT will operate IDS as a wholly owned business unit of SMT; (2) Gerard J. Hall, SMT founder and CEO, will become CEO over both companies and will retain the title of President of SMT in Durham, N.C.; (3) Rallis Pappas, IDS co-founder, will retain the title of President of IDS in Jacksonville, Fla.; (4) IDS will continue to operate intact from Florida as an IDS-branded division of SMT; (5) IDS personnel, senior management and functional departments will remain in place.

SMT's acquisition of IDS opens new markets for SMT's current products and services by IDS providing SMT (1) access to a new sector of live event scoring and display systems; (2) better integration opportunities to the official scoring systems for golf, tennis, NBA, NHL, UFC and the Dew Tour; and (3) a toehold into Europe, Australia and Asia.

SMT's acquisition of IDS opens new markets for IDS's current products and services by SMT providing IDS (1) greater access to live event broadcasters; (2) access to markets outside of sports as SMT expands outside of sports; (3) a stronger financial and corporate structure from which to operate; and (4) access to growth capital for new product development.

SMT and IDS will share knowledge bases and exploit the best practices of each company's respective creative, engineering, research and development, and operations departments to better serve the combined company's clients. SMT and IDS will leverage their formerly independent research and development departments to ensure that the next generation of SMT and IDS products and services will exhibit unprecedented levels of integration between live data creation and live data presentation across all screen sizes and platforms, whether in-stadium, broadcast, Web or mobile devices.

"SMT and IDS both have such a dedicated and talented team of employees and the mutual goal for the combined company is that together we become more scalable, more robust and more capable, from a resource perspective, so we may better serve our clients now and in the future," said IDS President Rallis Pappas. "SMT and IDS are very excited that this transaction moves us further down the path to that noble end."

SMT is a leading provider of graphics, statistics and video enhancement software and services for live television sports and entertainment broadcasts. SMT products play an integral role in the presentation of the world's most popular events, including the Super Bowl, NBC Sunday Night Football, the Indianapolis 500, March Madness, the Triple Crown, NASCAR, NBA on TNT and NHL.

IDS specializes in the in-stadium creation, collection, distribution, storage and presentation of sports content during live sports events for event presenters and sports organizations. IDS scoring and statistics systems and display boards and systems are on-site at such prestigious events as Wimbledon, the U.S. Open, Roland Garros, the Australian Open, the Olympic Games in London, The Open Championship, the Masters, the PGA Tour and the Dew Tour. IDS serves sports organizers, governing bodies and sponsors such as NBA, WTA Tour, WNBA, PGA Tour, UFC, USTA, USGA, CrossFIT, NHL, IBM and Sony Ericsson.

"We have at a single stroke doubled the size of SMT," said Hall. "I am very excited about the potential for leveraging the talents and resources of this combined company to achieve marketplace, technology and financial goals that would have been beyond the reach of either company operating separately."

Financial terms of the transaction are undisclosed.

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Feb 16 '12
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