Thomson announced that it has signed an agreement to acquire the third party of the shares of Canopus Co, Ltda., a Japanese company specializing in software for high definition video editing, through a private transaction with President and CEO, Hiroshi Yamada, and Marc Valentin, president of Grass Valley, a division of Thomson. The company also announced that it will call for a public offer to the other shareholders of the company to acquire the remaining portion of Canopus.
The value of the private transaction combined with that of the public offering would represent approximately €91.3 million on a basis of equitable value. Canopus had net debts, including real estate debts worth €5.2 million as of August 31 of 2005. Canopus' total revenue for one year, through August 31 of 2005 was €50 million, of which €40.5 million was received by ProAV and video editing. The profits from these operations, together with synergies, they will result in a neutral impact on profits main in the first year and a subsequent increase. In general, the business meets Thomson's acquisition criteria.
Along with discussions with Tales on Tales Broadcast & Multimedia (broadcasting and IP-TV), this transaction completes external initiatives of Thomson for its Grass Valley Broadcast & Networks business. Grass Valley is a key element in Thomson's two-year growth plan, as one of the four main engines to generate profits. The acquisition fits Thomson's goals of expanding its media customer base and entertainment and support the accelerated delivery of technologies that go from video editing, video over IP and digital conversion of media, among others.
Canopus' product offering strengthens Grass Valley's position in several markets. Thomson and Canopus reached an agreement on the substantial opportunities that exist in professional video (Pro Video or applications for non-broadcast video production), and professional A/V (ProAV or applications for university or corporate media centers and distance learning). Based on internal and third-party information, it is estimated that technologies of Canopus target markets exceeding €1 trillion and that Thomson did not arrive today.
