French firm Netgem, a provider of connected entertainment solutions, has submitted a takeover bid for French video distribution specialist VideoFutur Entertainment Group for around €5.9mn.
Joseph Haddad, CEO of Netgem, already owns a 42.3% stake in VideoFutur, and the two companies have an existing close relationship after working together for a number of years.
VideoFutur recently started moving beyond DVD rentals and into video-on-demand services, and Netgem hopes to gradually integrate VideoFutur’s cloud video technology into its overall lineup of products and services.
If the transaction is approved, Netgem will hold at least 77.5% of the share capital and voting rights of VideoFutur.
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.