Pace acquires Bewan to expand global presence as 2009 revenues soar 52%

Set-top box developer and FTSE 250 constituent Pace (LSE: PIC) has agreed to acquire Paris-based IP and cable gateways specialist Bewan Systems SA for up to €12.5 million, depending on the achievement of earn-out targets.

Pace expects Bewan’s residential gateway capabilities, including expertise in xDSL and cable DOCSIS 3.0 IP connectivity technologies, to enable it to offer converged gateway and digital TV products to payTV customers combined with its existing gateway business.

Additionally, Bewan has several customers in Europe, North Africa and Middle East, which will give Pace better access to these markets.

“As payTV operators develop converged home entertainment services, advanced residential gateways will become increasingly important - both as standalone devices and integrated into set-top box products that drive whole home networks... Bewan will further diversify the Pace Group's technology and product offering, helping deliver on our convergence vision,” said chief executive of Pace Neil Gaydon.

The acquisition is expected to be completed in Q2 2010.

The company has also announced its full year results today, reporting a 52% increase in revenues to £1.1 billion, while pre-tax profits soared 405% to £69.9 million and basic EPS (earnings per share) hiked from 4 pence to 17.7 pence. The company’s performance was boosted by a strong demand from payTV operators in all global markets as volume shipments rose 31% to 17.2 million set-top boxes, helping it achieve the rank of the second largest et-top box provider to the payTV industry.

Along with the Bewan acquisition, the highlights of the period included the first commercial whole home solution launched in US market.

The outlook for the year ahead was upbeat as conditions in the payTV market remained positive and the group entered 2010 with a strong financial and operating position, which Pace said would support a good demand for its products.

The group’s balance sheet rose from £37.7 million to £73.5 million and the final dividend was upped from last year’s 0.6 pence to 1 pence, taking total dividend for year to 1.5 pence compared to 0.6 pence in 2008.

http://www.proactiveinvestors.co.uk/companies/news/13921/pace-acquires-bewan-to-expand-global-presence-as-2009-revenues-soar-52-13921.html