It’s reported that the Vitec Group plc has acquired the business and assets of Litepanels, Inc and Litepanels, LLC, a leading manufacturer of LED-based lights for the television, broadcast, video and film industries. The initial consideration of US$14.5m, will be paid in cash, with additional deferred consideration dependent on future profitability.
Litepanels was founded in 2005 by five partners with extensive experience as lighting designers or lighting directors and located in North Hollywood, California. Litepanels has developed a range of LED on-camera and stand-mounted lighting systems, backed by a strong patent portfolio, that have gained acceptance with lighting and broadcast professionals in the last few years. Vitec describes Litepanels as a market leader in the media lighting industry.
The products created by Litepanels are used both on-location and in studio environments, including installations at the White House press briefing room. LED lighting is attractive, particularly in studio and film set applications, because of its low power consumption and low heat generation compared to traditional light sources, and is expected to continue to grow rapidly as lighting directors convert to this technology.
Litepanels had audited revenue and adjusted profit before tax in the year ended 31 December 2007 of $5.8m and $1.3m, respectively. Unaudited revenue for the six months to 30 June 2008 was $5.0m. The potential earnout payments are contingent on annual operating profit performance in the calendar years 2008 to 2011, with a maximum earnout payment of $50.0m. The upfront consideration plus cumulative earnout payments correspond to approximately a 5x EBIT multiple.
Gareth Rhys Williams, Chief Executive of Vitec, described Litepanels as a fast-growing business with an impressive patent portfolio of exciting products that are sold to Vitec's existing customer base. The team at Litepanels has successfully brought to market a range of easy-to-use products that are much more comfortable for the newscasters and actors to work with, and which dramatically reduce the energy required, both to operate the lights and to subsequently air-condition the studios.
According to Williams, Vitec already has a significant position in the lighting stand market, and sells on-camera lights through its existing broadcast channels;they look forward to working with the team at Litepanels to help develop the business in the future, leveraging off the strength of Vitec's worldwide distribution.
