Vitec Group acquires JOBY and Lowepro for £7.6m consideration

The Vitec Group plc, an international provider of products and solutions to the broadcast and photographic markets, has acquired certain assets and liabilities from the DayMen Group S.a.r.l (DayMen).

With brands on board mainly comprising of JOBY and Lowepro, a cash consideration of £7.6m, on a debt/cash-free basis, has been made with an expected total investment of £23.7m including deal costs.

Vitec has also acquired RT Motion Systems Ltd (RTMotion) for up to £3.4m in cash, including deal costs. The company provides wireless motor lens control systems for broadcast and video cameras.

Stephen Bird, group chief executive of Vitec, commented: “Vitec is the natural home for JOBY and Lowepro and we know the business well. This is an opportune time to buy these high profile, high quality brands.

“JOBY has been growing rapidly, reflecting its success in developing innovative new products for the camera accessories market, while Lowepro represents an opportunity to improve margins through cost reductions and integration with Manfrotto, along with the potential for additional benefits as its markets improve.

“RTMotion is a high technology business which complements our existing activities. Both of these acquisitions are an excellent strategic and technological fit and the two acquisitions together are expected to materially enhance earnings per share in 2018 and beyond.”

This acquisition will enable Vitec greater access to the fast-paced iPhoneography and vlogging market, and expand its presence in the US market by adding complementary brands to better its Photographic Division.

Vitec plans to integrate JOBY and Lowepro into its Photographic Division’s existing organisational structure, under the leadership of Marco Pezzana, the photographic divisional chief executive.

Under the terms of the acquisition, the initial cash consideration is £2.6m on a debt/cash-free basis, which includes deal costs and £0.5m held in escrow. A further £8m cash consideration will be payable dependent on the seller meeting integration and retention targets.