Palamon Capital Partners, a European mid market private equity firm, has sold OmniBus Systems to Miranda Technologies, a Toronto Stock Exchange listed company, for an all-cash consideration of EUR36.4m.
OmniBus is a developer of software systems for television broadcasters and video content distributors over mobile and internet platforms.
Its flagship product, iTX, enables broadcasters to manage the transmission of live television content in high definition using standard IT hardware and software products rather than the bespoke, complex, and predominantly hardware-based systems found in legacy installations.
Palamon acquired OmniBus from the administrators of its former German listed parent and set about shifting it from a bespoke software and hardware business with low margins to a scalable software business with higher margins and reduced installation and maintenance complexity.
Daan Knottenbelt, a partner at Palamon Capital Partners, says: “We are delighted with the sale of OmniBus to Miranda, which has enabled us to harvest a profit on this investment for our investors at a time when the broadcast sector is coming out of a downturn caused by the recent global recession. This was achieved by Palamon driving a strategic change in Omnibus’ economic model towards a highly scalable and profitable software business, a strategy that was superbly executed by chief executive Mike Oldham and his team.”
Mike Oldham, chief executive of OmniBus, adds: “It has been a pleasure working with Palamon over the years. Their support and strategic input as growth investors has been a pivotal factor in our company’s success. Together we have created an exciting and successful business.”
The sale adds to a sequence of exits by Palamon during 2010, including full exits of Nordic consumer credit company Nordax Finans and theme park operator Moviepark Germany, and partial exits from payments specialist Retail Decisions and independent wealth adviser Towry.
With the OmniBus exit, Palamon has now realised over EUR200m in 2010 from its portfolio companies.
