ZetaDisplay acquires Austrian integrator 

European digital signage integrator ZetaDisplay announced (invidis report) today the acquisition of Austrian integrator Peakmedia. According to invidis yearbook data – the Austrian acquisition adds about 10% to Zeta’s topline and 40-50% to the existing DACH business. The combined DACH business of Zeta – Nordland (acquired 2021) and Peakmedia (2023) – accounts for roughly a third of the global Zeta business of 53-54m EUR. (2022 calendar year data)

DACH-Market

For the DACH ranking – the transaction brings Zeta Display closer to Umdasch (5^th) overtaking Echion. The combined Zeta business in DACH now ranks sixth. Former Google manager Stefan Hoffmann joined Zeta Display as a new country manager in August, certainly with the task to make Zeta one of the top integrators in the DACH region.  

Zeta Display generates more revenue outside Scandinavia

The transaction is very likely tipping Zeta’s revenue scale from the Nordics towards DACH and Benelux. Now Zeta’s regional split is approximately evenly distributed between the Nordics, Benelux and DACH. Zeta Display is becoming a true Pan-European digital signage integrator less depending on the more mature Nordics home market.

Digital Signage M&A market back on track 

After 18 months with virtually no deals, the M&A market seems to be back on track. Despite high interest rates and high inflation, consolidation of the digital signage market continues. As the digital signage business gets tougher – the market demand for digital signage solutions contracted in the first two quarters – more digital signage market players are likely to consider selling. The bid-ask gap is still wide open but is slowly closing due to pressures on both sides.

Waiting for the big bang

Most of the deals we have tracked in recent years have been add-on acquisitions by one of the larger, PE backed players either adding geographic footprint, customers, or (software) capabilities. Acquisition targets were typically below 10m EUR. However, on a global scale, European digital signage companies are still small, especially compared to some of their North American counterparts. For a true consolidation, we are expecting to see mergers of leading players or larger acquisitions in the future.

Overview Peakmedia Group

The transaction is breaking up the previous full-service group structure of Peakmedia. The Austrian digital signage integrator included the main digital signage business (Peakmedia Digital Signage) and the joint-ventures Peakmedia Vertrieb (DooH Media sales) and two separate digital signage content agencies (Peakmedia Marketing and PM Studios). Zeta Display only acquired the main integration business.