The boards of directors of French firms Videofutur and Netgem, providers respectively of video distribution solutions and connected entertainment products, have approved the tender offer by Netgem for 100% of the shares and convertible bonds issued by Videofutur, in exchange for cash or Netgem shares.
Netgem has offered €0.15 for each Videofutur share, or one Netgem share in exchange for 20 Videofutur shares, limited to 12.2% of Netgem’s existing share capital.
If Videofutur’s shareholders approve the offer, Netgem will hold at least 77.5% of Videofutur’s share capital. The maximum amount to be paid in cash by Netgem is expected to amount to €5.9mn.
Videofutur has transformed its business in recent years by evolving from DVD rental and distribution to operating connected TV services.
Its cloud-based video-on-demand platform is available across a wide range of connected devices such as PCs, smart TVs, tablets and smartphones.
If the transaction is successful, Netgem will acquire Videofutur’s expertise and an existing offer to address the connected TV market, enabling it to rapidly deploy a connected TV offer for multi-service operators in France.
Beyond the French market, the cloud services platform developed by Videofutur for the multi-screen distribution of video services will also be progressively integrated within Netgem’s international offering.
Netgem revealed last week that it plans to intensify its investments in the connected TV industry after posting a 4% drop in revenues for 2012 as a whole to €81.2mn.