In its latest investor call, Econocom left no doubt about its ambitions: with €300 million in ProAV revenue following a series of targeted acquisitions, the company now confidently claims the title of Europe’s market leader in digital signage. However, leadership comes with challenges - and opportunities.
Econocom’s Digital Signage Ambitions: A Strategic Play for European Leadership
Led by Chairman Jean-Louis Bouchard and CEO Angel Benguigui, Econocom has expanded its European footprint through the acquisitions of ICT (Germany), ISS (Ireland), Avanzia (Spain), and Smartcomm (UK). These deals not only boost annual ProAV revenues to €300 million, but also bring together a workforce of over 750 employees across its ProAV and digital signage subsidiaries.
As of this autumn, the group will begin standardizing its ProAV offerings and aligning its market presence under the emerging sub-brand “Gather with Econocom,” launched last year to unify the company’s expanding digital signage ecosystem.
Cross-Divisional Selling: A New Growth Lever
Spain has served as a successful testing ground for a cross-divisional sales strategy, spearheaded by Chief Sales Officer Israel Garcia. Revenue and margins have already seen a substantial lift, and the model is now set to roll out across Europe.
This strategic integration across verticals is expected to fuel organic growth—complemented by further M&A activity, with a major acquisition underway in Italy.
Cyber Security Gaps and Tariff Tensions
Despite the aggressive expansion, Econocom sees vulnerabilities in the ProAV landscape—notably a lack of IT security awareness in many signage projects. Management also flagged rising hardware costs due to U.S. tariffs, which are impacting purchasing decisions across Europe.
These concerns have led to a renewed emphasis on investing in IT security and data solutions, both as standalone offerings and complementary components to digital signage deployments.
A Disciplined Approach to M&A
While bullish on acquisitions, Econocom remains cautious. In contrast to private equity investors sometimes willing to chase inflated multiples, the group is committed to realistic valuations aligned with current interest rates. The management is not prepared to overpay for scale.
Circular Economy Advantage
One overlooked but increasingly important strength is Econocom’s position in hardware refurbishment. In the first half of the year, the company refurbished and resold 600,000 IT devices, a strategic response to the rising costs of new hardware and a testament to its sustainability initiatives.
Building More Than Market Share
Econocom’s investor call paints a picture of a company orchestrating a multidimensional ProAV strategy – standardization, cross-divisional collaboration, disciplined acquisitions, and circular economy practices. But some other divisions are economically challenged as new threats emerge and competition intensifies.
