Evertz buys 3.1% stake in EVS

Evertz directly competes with EVS in the live production replay market.
Lead Text: 
Evertz directly competes with EVS in the live production replay market.

Evertz Technologies has acquired a 3.12% stake in live production replay specialist EVS. The sale was revealed in an announcement made by EVS as part of a transparency notification required by securities regulators. 

EVS said in a statement that it was notified on October 22 that Evertz has acquired 424,936 EVS shares most likely in the open-market. The share purchase crosses the  3% equity stake threshold which automatically triggers a transparency notification requirement.

Canadian manufacturer Evertz is a global leader in the broadcast solutions segment and directly competes with EVS in the live production replay market. Its Dreamcatcher replay system product competes with EVS video replay production servers and solutions which remain the dominant product in the live sports replay market, thanks to its loyal following among live production specialists, and decades of customer relationships.

Industry analyst Devoncroft Partners commented on the deal: "The open-market move by Evertz is unusual for a company that is typically focused on developing its own product portfolio, with the occasional bolt-on acquisition. Evertz generates a lot of cash and pays a healthy dividend to its shareholders. Despite its strong market position, 2018 has been a difficult trading year for EVS – highly unusual for an even-year filled with big events including the FIFA World Cup. The company experienced it’s first even-year decline in almost two decades when it issued its earnings for Q2 and 1H 2018. Consequently, EVS has seen a sharp drop in its share price, which is down 45.2% since the beginning of 2018, and down 51.4% over the past year."

Article Context: 
News
Pranav Vadehra
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Modified Date: 
Thursday, October 25, 2018 - 09:28
Published Date: 
Thursday, October 25, 2018 - 09:28

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