The merger between two powerhouse broadcast graphics companies is officially complete, creating ChyronHego Corp.
Chyron and Hego combined in a cash and stock-for-stock transaction on Wednesday. ChyronHego, headquartered in Melville, N.Y., will continue trading on the NASDAQ under the symbol CHYR. As of Thursday morning, stock was trading at $1.36.
Michael Wellesley-Wesley, ChyronHego CEO, said, “The merger of Chyron and Hego brings together our two companies to form a global leader in broadcast graphics creation, playout and real-time data visualization. This is a truly transformative transaction for Chyron and Hego. By uniting the teams and resources of both companies, we will deliver to our customers a highly diverse and compelling broadcast graphics capability.”
Prior to the official merger, Chyron reported revenue for the first quarter was $8.01 million, up 2% from the same period a year ago, and up 8% from the previous quarter, reports Joe Zaller, an industry analyst and owner of Devoncroft Partners.
Heading into the release of its Q1 earnings for the year, Chyron said it had cut 20 employees from its workforce as part of a reorganization plan designed to “reduce operating expenses while maintaining its focus on strategic initiatives.”
Since the end of Q1, Chyron has reduced its employee base by more than 30%, reports Devoncroft.
In March, Chyron received notice from the NASDAQ Stock Market that it could be delisted because it isn’t in compliance with the minimum — $10 million — stockholders’ equity requirement.
A majority of Hego’s customers are across Europe, while 75% of Chyron’s sales are in North Amerca, Wellesley-Wesley said during a press conference at the NAB Show last month. One reason for merging was that Hego had strong expertise in sports graphics, while Chyron focused more on news.