OmniBus

Invested:
September 2001

Exited:
September 2010

Return:
1.3x MoC / IRR 3%

Sector:
Business Services

Stage:
Mid (core strategy)

Headquarters:
Loughborough, UK

Region:
UK

Business:
Broadcasting Automation Services

Business at time of investment

UK-headquartered OmniBus developed, sold and implemented software for TV broadcasting systems. Palamon acquired OmniBus from the administrators of its former German listed parent.

Investment rationale

At the time of the investment, the market for TV broadcasting technology was undergoing significant change driven by the digitisation of media content enabling more efficient electronic workflows.  OmniBus had a strong position at the higher end of the market and strong innovation capability.

Value creation

• Strategy: Transformed the business model by shifting the model from a bespoke software and hardware business with low margins, to a highly scalable software business with significantly higher margins and reduced installation and maintenance complexity

• Institutionalisation: Professionalised the management by recruiting a new Chairman, CEO, CFO, EVP of Product Development and head of US Operations

• Focused on key product: Invested into a flagship product, iTX, which enabled broadcasters to manage the transmission of live television content in high definition using standard IT hardware and software products instead of using complex, tailored hardware-based systems and reduce cost of ownership by 50%.

Company at exit

Leading broadcasters around the world installed iTX, including; the BBC, MTV, Discovery, Disney, CBS, and DirecTV. Despite the global recession from 2008, OmniBus continued strong growth in profitability and its unique strategic position made it a compelling acquisition target for trade buyers.

Result

OmniBus was sold in September 2010 for €36.4 million to the listed Canadian firm, Miranda Technologies generating a 1.3x MoC return.