Codan Group Expands Its Reach with Wave Central Acquisition
Codan Group has officially announced that its subsidiary, Domo Broadcast Holdings LLC, has signed a definitive agreement to acquire all shares of Wave Central LLC.
Leadership Transition and Integration
The founders and senior management team of Wave Central will transition to Codan’s Tactical Communications Broadcast division, Domo Broadcast, ensuring continuity within the Wave Central operations.
Wave Central’s Expertise in Wireless Broadcasting
As a prominent systems integrator in North America, Wave Central specializes in wireless broadcasting solutions, developing tailored products that integrate seamlessly with Domo Broadcast’s technology for various sectors, including sports, cinema, and broadcasting. Their offerings primarily feature wireless video camera links and high-quality broadcast equipment,making them a key distribution partner for Domo Broadcast in North America for the past 15 years.
Strategic Growth and Market Expansion
Codan’s Tactical Communications division utilizes advanced radio and wireless technologies across essential sectors such as military, law enforcement, unmanned systems, humanitarian efforts, and broadcasting. The acquisition of Wave Central aligns with Codan’s strategy to enhance its portfolio by acquiring complementary businesses, thereby leveraging its radio and wireless technologies to scale operations in targeted markets. Domo Broadcast already holds a significant position in the European wireless camera link market, and this acquisition will enable it to capitalize on Wave central’s esteemed reputation and integration capabilities to foster growth in North america.
Enhancing Live Event Coverage
The collaboration between Domo Broadcast and wave Central is anticipated to create new opportunities in live event news coverage, collegiate and professional sports, film production, and unmanned applications within the expanding global remote broadcasting sector.
Financial Overview of the Acquisition
The acquisition deal includes an initial cash payment of $9.1 million, with potential additional payments of up to $12.2 million contingent on achieving specific performance targets over the next three years. This transaction will be financed through Codan’s existing debt facilities. wave Central is projected to generate approximately $16 million in revenue and a pro forma EBITDA of around $4 million for the fiscal year ending December 31, 2023, making it immediately accretive to earnings per share. Based on the current financial performance, excluding any potential revenue synergies or growth opportunities, the acquisition is valued at roughly four times EBITDA, including estimated earn-out payments.
Leadership insights on the Acquisition
Paul Sangster, President and Executive General Manager of Tactical Communications, remarked, “The partnership between Wave Central and Domo Broadcast has flourished over the past 15 years, delivering integrated broadcast solutions. Recently, through the acquisition of Broadcast Wireless Systems Limited and organic growth, we have elevated Domo Broadcast’s revenues to approximately $20 million. The acquisition of Wave Central positions Domo Broadcast as a truly global player in the broadcast industry,substantially enhancing our market share in North America. it also grants direct access to the North American market for our newly launched Onyx and Quartz product lines, which feature 4K streaming and mesh technology for intercom, robotics, and camera control. We are thrilled to welcome the Wave Central team to Domo Tactical Communications and are eager to expand our operational capabilities across North America.”
