International. Chyron signed a definitive agreement to acquire Hego AB and its subsidiaries, collectively known as Hego Group, a provider of powerful graphics and data visualization solutions for television and sport,headquartered in Stockholm, Sweden, and having operations in Norway, Finland, Czech Republic, UK and USA.
In this way a new company called ChyronHego emerges, which seeks to create a new driving force in the fields of TV graphics, data visualization and live production services news, sports and production in general.
According to the details of the negotiation released, a share transaction will be made whereby Chyron will issue a number of common shares representing 40% of its total outstanding common shares, in exchange for any outstanding share capital of Hego.
Following the achievement of certain revenues during 2013, 2014 and/or 2015, Hego shareholders will be entitled to receive additional shares of Chyron until the number of common shares issued in the transaction is equal to 50%.
The transaction is subject to customary closing conditions, including approval by Chyron's shareholders, and is expected to close in the second quarter of 2013. Chyron's Board of Directors unanimously approved the transaction.
Johan Apel, President and CEO of Hego Group, will be elected to Chyron's board of directors and will be appointed President and Chief Operating Officer of ChyronHego. Michael Wellesley-Wesley, president and CEO of Chyron, will continue as CEO ChyronHego. Hego shareholders shall also have the right to appoint another member to Chyron's board of directors.
As exclusive financial advisor to the transaction was Morpheus Capital Advisors, which provided an unbiased opinion to Chyron's management that the transaction was fair to Chyron and its shareholders financially sound.
