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15th February 2007
Staging Connections Group Limited announced today that it has entered into a formal agreement to purchase Bytecraft Entertainment, a specialist large scale event lighting, Superscreen and vision services company, from Tattersall’s Limited for consideration of $42.5 million in cash, funded through Staging Connections’ available debt facilities. The acquisition does not include Bytecraft Systems which continues to be owned by Tattersall’s.
Extends Service Offering
“Since the announcement to the market on 25 January 2007, Staging Connections has progressed discussions with Tattersall’s and I am delighted to announce that we have now signed a formal agreement with Tattersall’s Limited for Staging Connections to acquire the world-class Bytecraft Entertainment business,” Staging Connections Chief Executive Michael Gardner said.
“Bytecraft Entertainment is a highly respected market-leading global entertainment services group which operates in fields closely related to, and provides many linkages to Staging Connections’ existing global event services business.
“This acquisition extends Staging Connections’ service offering and is part of our ongoing expansion into new market segments as well as new geographic areas. The range of specialist event lighting, Superscreen and vision services provided by Bytecraft Entertainment enables Staging Connections to further consolidate its position as a leading worldwide integrated event services group,” Mr Gardner said.
Bytecraft Entertainment‘s services include special effects lighting, technical design, equipment, installation, operation and maintenance, as well as sales and hire of its proprietary Superscreen systems. The Company’s recent major events include the Melbourne 2006 Commonwealth Games, New Year’s Eve Sydney Harbour, the Doha Qatar 2006 Asian games, the F1 Australian Grand Prix, Phillip Island Superbike World Championship, Clipsal 500 Adelaide as well as rock concerts for artists such as Kylie Minogue, Kiss, Green Day and the 2006 MTV Awards. The Company also provides specialist services to theatres with its proprietary ‘Inspire’ automated lighting control system at the Victorian Arts Centre and its automated proprietary stage control and lighting systems installed throughout the Sydney Opera House.
Mr Stephen Found, who established the Bytecraft Group in 1984, will remain with the business as Managing Director after the transaction, along with the Bytecraft Entertainment senior management team and the entire Bytecraft Entertainment workforce of skilled lighting and Superscreen technicians, totalling 70 people.
“Mr Found and his team revolutionised large scale event lighting, Superscreen and vision services for major sporting and entertainment events and I am pleased to say that they will continue to manage the Bytecraft Entertainment business following its acquisition by Staging Connections. We look forward to continuing to support the Bytecraft Entertainment business, brand and expertise across Australia’s and the world’s leading events. Additionally we welcome Stephen into our global events leadership group as his experience, network and expertise in the crafting and delivery of world class events in this specialist field is second to none,” Mr Gardner said.
“I am delighted to be joining the Staging Connections group and look forward to working with an organisation where event and allied services are the core of the company’s day-to-day operations. Within this environment, we expect to continue to expand Bytecraft Entertainment’s specialist services by leveraging Staging Connections’ global operations as well as through organic growth and M&A activity,” Mr Found said.
Funding and Earnings
Under Tattersall’s ownership, the Bytecraft Entertainment business has significantly increased revenue, earnings and product expansion to become one of the world’s leading providers of large scale event lighting, Superscreen and vision systems. This has been achieved by both acquisitions and organic growth.
Staging Connections will fund the Bytecraft Entertainment acquisition from available debt facilities and is purchasing the business free of any encumbrances. The acquisition will be earnings per share accretive, increasing EPS by 3.0c on an annualised basis.
Under the terms of the agreement the acquisition of Bytecraft Entertainment will be completed by 28 February 2007 and effective from 1 March 2007.
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