Digital Vision is set to acquire motion analysis and film scanning firm Image Systems for a total consideration of almost £4 million.
Digital Vision CEO Bengt Broman described the deal as “a logical and strategic step in Digital Vision’s development”, and he said he expected to see further consolidation across the image processing sector.
“The main task was to widen our product portfolio,” he told Broadcast. “Also, we had to try to find other vertical markets; you can be active in multiple market segments, and [Image Systems] are strong in defence and automotive, so we are able to widen our product portfolio, cross sell between ourselves and gain access to new markets.”
Broman said there were “multiple driving forces” behind the deal for the fellow Sweden-based firm, including the transition to HD and higher resolution content, consumer demand for better image quality and the move from analogue to digital.
“In general, this is a business that needs consolidation,” Broman added, pointing to Rohde & Schwarz’s acquisition of Digital Video Systems and Blackmagic’s purchase of DaVinci Systems. “This is a good time for consolidation and I expect to see more. It’s a sound development in a growing business.”
As well as its Stockholm HQ, Digital Vision has offices in Los Angeles, Hong Kong and London. Broman said there will be “total integration” between the two firms, but he said the impact on the UK will be negligible.
“The UK part will be less influenced by the acquisition because they are still focused on post production. The synergies on cost will be more of a Sweden issue than a UK issue.”
Mikael Jacobsson, the second largest shareholder in Image Systems, will be appointed CEO by the end of Q1 2011 with Broman set to take on a board role.
The acquisition is subject to approval at an additional shareholder meeting.