Chyron Corporation has inked a definitive agreement to
acquire Hego AB and its subsidiaries, which provide a wide range of graphics
and data visualization solutions for TV and sports. The combined company will
be rebranded as ChyronHego.
In a statement, Chyron president and CEO Michael
Wellesley-Wesley called the deal a "truly transformative transaction for
Chyron.
"The merger of Chyron and Hego brings together two
pioneering companies to create a global leader in broadcast graphics creation,
play-out and real-time data visualization," he noted. "By combining the teams
and resources of Chyron and Hego, we will deliver to our customers a highly
diverse and compelling broadcast graphics capability."
Hego is a privately-held company with its headquarters in
Stockholm, Sweden, and operations in Norway, Finland, Czech Republic, the U.K.
and U.S.
The two companies noted that their product lines are
complementary with very little overlap. Hego's solutions predominantly address
the needs of live sports production with products for augmented reality,
virtual product placement, telestration and production services.
Chyron has recently been more focused on graphics solutions
for live and near-live news production workflows.
Chyron will buy Hego in a stock transaction by using Chyron
common stock representing 40% of its aggregate shares of common stock
outstanding, including certain outstanding options, after the closing, in
exchange for all of Hego's outstanding capital stock, the companies reported.
If certain revenue goals are achieved in 2013, 2014 and/or
2015, Hego's shareholders will also be entitled to receive additional shares.
The transaction is expected to close in the second quarter
of 2013.
Chyron's board of directors unanimously approved the
transaction and Chyron shareholders representing 40% of Chyron's outstanding
common stock have committed to vote in favor of the transaction.
When the deal closes, Johan Apel, chairman and CEO of Hego
Group, will be elected to Chyron's board of directors and will be appointed president
and COO of ChyronHego. Wellesley-Wesley will remain as ChyronHego CEO.
Morpheus Capital Advisors acted as exclusive financial
advisor.
