Chyron to Acquire Hego

Combined company ChyronHego will have a stronger presence in graphics, data visualization and production services

By George Winslow -- Broadcasting & Cable, 3/11/2013 5:55:55 PM

Chyron Corporation has inked a definitive agreement to acquire Hego AB and its subsidiaries, which provide a wide range of graphics and data visualization solutions for TV and sports. The combined company will be rebranded as ChyronHego.

In a statement, Chyron president and CEO Michael Wellesley-Wesley called the deal a "truly transformative transaction for Chyron.

"The merger of Chyron and Hego brings together two pioneering companies to create a global leader in broadcast graphics creation, play-out and real-time data visualization," he noted. "By combining the teams and resources of Chyron and Hego, we will deliver to our customers a highly diverse and compelling broadcast graphics capability." 

Hego is a privately-held company with its headquarters in Stockholm, Sweden, and operations in Norway, Finland, Czech Republic, the U.K. and U.S.

The two companies noted that their product lines are complementary with very little overlap. Hego's solutions predominantly address the needs of live sports production with products for augmented reality, virtual product placement, telestration and production services.

Chyron has recently been more focused on graphics solutions for live and near-live news production workflows.

Chyron will buy Hego in a stock transaction by using Chyron common stock representing 40% of its aggregate shares of common stock outstanding, including certain outstanding options, after the closing, in exchange for all of Hego's outstanding capital stock, the companies reported.

If certain revenue goals are achieved in 2013, 2014 and/or 2015, Hego's shareholders will also be entitled to receive additional shares.

The transaction is expected to close in the second quarter of 2013.

Chyron's board of directors unanimously approved the transaction and Chyron shareholders representing 40% of Chyron's outstanding common stock have committed to vote in favor of the transaction.

When the deal closes, Johan Apel, chairman and CEO of Hego Group, will be elected to Chyron's board of directors and will be appointed president and COO of ChyronHego. Wellesley-Wesley will remain as ChyronHego CEO.

Morpheus Capital Advisors acted as exclusive financial advisor.