Published:
18-Nov-09
The Swiss pay TV technology provider Kudelski Group has acquired US middleware vendor OpenTV. Prior to the acquisition, Kudelski's controlling interest stood at 32.3 per cent with 77.2 per cent of OpenTV's economic and voting interests, respectively. Kudelski announced on 13 November 2009 that upon receipt of 56m OpenTV class A shares, it would control 91 per cent of OpenTV voting rights. Kudelski's tender offer, running from 5 October 2009 until the announcement, valued OpenTV at $1.55 per share, a 17% gratuity over OpenTV's October 5 closing price. Subsequent to the $87.4m shareholder cash-out, Kudelski will annul OpenTV's trading on the NASDAQ.
Our take...The Group's rationale for re-initiating an acquisition bid appears unchanged. In 2008, all Kudelski business segments suffered major income contraction, or were loss-making, with the exception of the Middleware and Advertising division, consisting exclusively of OpenTV. Kudelski's Middleware segment has maintained this profitability through H1 2009, reporting net income of CHF 5.4m. The Group's tenacity in seeking and re-seeking full ownership appears to reflect a desire to seize the revenue and income opportunity presented by OpenTV.
While OpenTV's Core middleware and Kudelski's Nagravision conditional access (CA) have cross sold well since Kudelski's original January 2007 share purchase, full OpenTV acquisition will allow the Swiss vendor to develop further a more tightly integrated, fully interoperable middleware and CA bundle.
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Switzerland,
Kudelski fails in bid to acquire OpenTV
