For a business like Vitec, intelligent and sustained investment in new markets, technologies, products and people enables us to retain our market-leading positions and create shareholder value in the future.
The "image capture and content creation" market is rapidly changing and we continue to identify and make appropriate, value-adding acquisitions to supplement our organic activities and enable us to benefit from those changes.
Our unique heritage, experienced people and the credibility of our established, premium brands allow us to find attractive, high quality businesses in our core or adjacent markets, technologies and geographies to achieve our growth objectives.
We completed three acquisitions in 2018 and the pipeline of potential acquisitions continued to build during the year. We acquired Syrp in January 2019.
The acquisition of Adeal is in line with Vitec's strategy to expand in APAC and get closer to its customers through owning more of its own distribution channel. In addition to sales growth, margin consolidation and full control of channel management, Vitec's ownership of Adeal will enable the Group to consolidate its Imaging Solutions brands under one national distributor.
Adeal is a distributor of consumer and professional imaging products and accessories based in Melbourne, Australia, and Vitec's former Imaging Solutions distribution partner in Australia. Adeal will become part of Vitec's Imaging Solutions Division.
Vitec entered the adjacent audio capture market with the acquisition of Rycote, a UK-based manufacturer of advanced noise reduction equipment. Quality audio capture is an integral element in the creation of high quality videos and Vitec's existing customers, whether broadcasters, videographers or ICCs, already buy audio products.
There are opportunities across all three of Vitec's Divisions to sell Rycote products in conjunction with JOBY GorillaPods, Manfrotto tripods and Anton/Bauer batteries. Vitec operates primarily in the video production market and this acquisition has opened up the opportunity for us to enter the growing audio capture market, adding innovative and complementary audio devices for our customers, and creating additional value for our shareholders.
"Vitec's portfolio of brands is the envy of the broadcast and cinema industries, so it was a real honour for Rycote to join the Group. The challenge now is to deliver broadcast-quality sounds to the dynamic and growing ICC market - this represents a huge opportunity, and one that we're truly excited about. "
Simon Davies, Former owner and Managing Director, Rycote
Wireless video capabilities transformed by margin enhancing acquisition of Amimon Amimon brings extensive software, chipset design and electronics hardware development expertise to Vitec, and their Israel facility has primarily become an R&D centre of excellence.
The acquisition is in line with Vitec’s strategy to develop and grow in the wireless video market and will give Vitec access to patented core technology as well as new intellectual property. Amimon is the technology of choice for wireless equipment used in the cine market. Being part of the Group has opened up the exciting opportunity for Vitec to further develop underlying technology to create a wireless communications platform onto which multiple cameras/monitors can attach, giving our customers greater flexibility in image capture and content creation.
Vitec and Amimon have had a strong customer/supplier relationship since 2012, having worked together to build a new market for professional wireless video. Amimon is the key supplier to Teradek, having developed a market-leading, exclusive and patented technology which is recognised as the industry-standard for zero delay wireless video. Amimon’s technology is used in many of our Creative Solutions products, enabling very high quality, zero delay video, to be transmitted wirelessly between cameras and monitors. This connects a director and crew to the camera in a real-time, cable-free environment, and allows fast changes on set, saving time and money.
"Having worked with Teradek and SmallHD for many years, joining together to vertically integrate is very exciting. It will allow us to leverage our advanced and unique technology with Vitec’s market knowledge, premium brands and distribution channels to develop exciting new products for existing and new markets."
Tal Keren-Zvi General Manager, VP Operations & R&D, Amimon
Syrp designs and develops motorised camera sliders and motion control hardware and software, which enable ICCs to control their camera equipment remotely allowing the capture and smooth tracking of shots for video, time-lapse and hyper-lapse photography.
This acquisition is in line with Vitec’s strategy to drive growth by increasing our addressable markets and expanding our higher technology capabilities. Having the respected and popular Syrp brand and products within our portfolio will allow us to penetrate the adjacent and growing motion control market.
Syrp products are highly complementary to Vitec’s existing brands and will give our photographer and ICC customers greater flexibility to create and share exceptional content. Social media is driving unprecedented growth in short dynamic videos and speeded up time-lapse productions.
The business will be integrated into our Imaging Solutions Division where it will become an R&D centre of excellence for mechatronic development in New Zealand.