Vizrt has entered into a term sheet to acquire LiberoVision, a Swiss-based provider of technologies for virtual sports enhancements. The move would strengthen the ability of Vizrt, a leading provider of content production and graphics systems, in the area of sports production.
LiberoVision currently offers two product lines: Libero Highlight provides realistic 3D replays while Libero Offside provides instant analysis during soccer games.
"LiberoVision brings to Vizrt best of class additional capabilities to enhance sports broadcasts," noted Martin Burkhalter, CEO of Vizrt in a statement. "Their products allow for live on-air review and analysis of events on the field, also from points of view not capture by cameras, a large and growing market. In creating a seemingly 3D environment for normal 2D broadcasts, this type of analysis provides yet another compelling way to tell a story, a key driver behind all our BG [broadcast graphics] products."
Terms of the acquisition will be based on the performance of LiberoVision. Vizrt will pay for LiberoVision's shares in installments, with 60% being due upon the signing of the definitive agreement, 20% based on the financial performance of LiberoVision in 2011 and another 20% on the financial statements of LiberoVision for 2012.
Vizrt will pay 6 million Swiss francs ($6.12 million) for the first 60% of LiberoVision shares, a figure that could be increased by an additional 1 million Swiss francs ($1.02 million) if LiberoVision's earnings before interest and taxes (EBIT) exceed 1 million Swiss francs ($1.02) for 2010. The other 20% payments will be calculated as 20% of ten times LiberoVision's EBIT for the financial year. All installments shall consist of 80% cash and 20% Vizrt shares.