Scisys buys Germany´s Annova Sytems for £9.7m

Software company Scisys bought Munich-based Annova Systems, a software provider for €11.35m (£9.7m) which puts it in “a stronger market position” across Europe.

The acquisition, which is expected to be “strongly” earnings enhancing from 2017 onwards, will be funded via a new bank loan from Deutsche Bank and there will be a three year earn-out of up to €16.48m (£14.09m) in cash or shares subject to reaching targets.

Annova has a “strong” customer base including public and commercial broadcasters across Europe, including a 12-year contract with the BBC, and has its own intellectual property content software, OpenMedia.

For the year ended 31 December 2015, Annova generated revenues of €7.5m, earnings before interest and tax (EBIT) of €1.1m and operating cash flow of €1.4m.

Mike Love, chairman of Scisys, said: " We have been looking for the compelling next acquisition for Scisys for a number of years and this acquisition meets our criteria: it is an important strategic step for Scisys, putting us in a stronger market position, not only within our existing German operations, but across Europe more broadly.

"Our enlarged operations will be able to offer cutting-edge software solutions to the international media and broadcast sector with Annova's OpenMedia product strongly complementing the dira! product suite of our existing media and broadcast division. Both products and solutions target similar broadcast clients providing strong scope for synergies.”

Michael Schüller, chief executive and major shareholder of Annova, added: "With Scisys we get a perfect partner, providing us with an opportunity to offer customers a new best-of-breed solution with exciting synergies across our product portfolios."

Shares in Scisys were up 4.56% to 112.40p at 1258 GMT.