20 years of successful connected home experience

In 1996, the television was the center of the home and the symbol of entertainment. Netgem invented the « Box », allowing the development of the IPTV, emblematic service of the deployment of ADSL, the first generation Internet.

Today, this central point has fragmented into multiple individual screens and connected objects, and many other digital services are there and will be consumed: video streaming and very high­resolution audio, virtual reality, but also security, health, energy, education … Fiber optics will inexorably replace the « copper wire », and makes a new generation of digital services that will improve the lives of everyone possible.

The emergence of a Fiber ecosystem, with favorable rules of the game

Everywhere in Europe the Fiber market is partially or totally open. It is the consequence of the priority of the political choice of « ultra­high­speed for everyone ». Since the infrastructures are being financed by public resources, independent service operators should be able to access that market in a non­discriminatory manner.

In France, Netgem has been active in this market for several years through its participation in Videofutur, and more recently in the UK, and is deploying in those countries as an operator of the connected home and very high­speed services.

After focusing on the Box for Everyone as mission of its first 20 years, Netgem nows chooses the Fiber for Everyone, its new mission in the conquest of the connected home.

First success with Videofutur, a replication in progress in Great Britain

This model of service operators for ultra­high speed has been incubated and developed these past years in France within Vitis, mother company of Videofutur,of which NETGEM is the largest shareholder, alongside la Caisse des Dépôts, the first investor in the open access market and Oceinde, fiber operator in La Réunion.

In few years, Videofutur succeeded in positioning itself as an alternative operator in France, leader of the open access market, which are the fiber operators that provide the national coverage of very high speed in the regions and cover almost half of the homes. The infrastructures of these networks are financed by public funds and any operator can deliver services there in a non­discriminatory way. The reference magazine 01net, in a recent comparative overview of the operator offers in France, has made the offer of VITIS, under the Videofutur brand, the best in the regions.

In Great Britain, in a different market organization context, a similar development is underway. The contract won a few years ago in Great Britain has led the local subsidiary to develop a know­how as an « operator of services for third­parties « , which it now deploys more widely under the brand name, through several distribution channels, including fiber in priority.

Strengthen in Videofutur to assess strategy services

Netgem announces that the company will bring to Vitis its branch of « multi-screen cloud platform and digital recorder » activity which has been so far part of the Box activity, with nine employees and exclusive rights to technology in France and Germany.

This operation, validated by the competent bodies of Vitis and Netgem, reinforces appreciably the resources of Vitis, and leads to a majority takeover of Netgem within Vitis, which will own 53.2% of the capital post operation . This operation follows a capital increase of € 4 million in cash subscribed at the end of 2018 by the others shareholders.

This operation is subject to a number of usual conditions precedent, including the agreement of the next General Meeting of Netgem shareholders. It values the participation of Netgem within VITIS to € 17.9 million post-money.

Videofutur business plan, which is not consolidated in Netgem Group’s accounts, shows a tripling of activity to reach € 30 million in 2021

Refocused Box activity

This operation also allows the Box activity to refocus on its core business, to significantly reduce its costs and thus ensure the support of its customers and the maintenance of its products in a profitable way.

Attend the meeting on may 14th 2019

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