MELVILLE, N.Y. —
Chyron Corporation, a provider of graphics as a service for on-air and digital video applications, has reached an agreement with Hego AB and its subsidiaries to acquire Hego Group, the provider of graphics and data visualization solutions for TV and sports.
Hego Group is headquartered in Stockholm, Sweden, and has operations in Norway, Finland, Czech Republic, United Kingdom and the United States. After the acquisition, the combined company will be rebranded as ChyronHego.
The transaction will take the form of a stock transaction; Chyron will issue shares of common stock, which will represent 40 percent of its aggregate shares of common stock outstanding, in exchange for all of Hego’s outstanding capital stock. Based upon revenue milestones, Hego’s shareholders will also be entitled to receive additional shares of Chyron common stock, equal to 50 percent of the aggregate shares of Chyron common stock outstanding, after the closing.
The transaction is subject to approval by Chyron’s shareholders, and is expected to close in the second quarter of 2013.
After the merger is complete, Johan Apel, chairman and CEO of Hego Group, will then be added to Chyron’s board of directors and appointed president and chief operating officer of ChyronHego. Chryron President and CEO Michael Wellesley-Wesley will remain as ChyronHego CEO. Hego’s shareholders will also appoint another member to Chyron’s board of directors.
The product lines are complementary with little overlap. Hego focuses on live sports production through augmented reality and virtual product placement, telestration, and production services offerings based around their proprietary image and player tracking solutions. Chyron provides graphics solutions for live and near-live news production workflows.