RR Media Acquires Satlink Communications
Airport City Business Park, Israel, June 8, 2015---RR Media (NASDAQ: RRM), a provider of global digital media services to the broadcast industry, has announced the acquisition of Satlink Communications, an Israel-based global provider of content distribution, management and playout services for US$ 19 million subject to bank debts and other certain adjustments.
This transaction comes quickly after the recent acquisition of Eastern Space Systems (ESS) as part of a continued strategy to increase scale and expand service capabilities, acording to the company. Management expects that the acquisition of Satlink Communications followed by the integration of the companies networks will broaden RR Media industry leadership by expanding its global content distribution network and content management footprint, strengthening its customer mix by adding upper-tier customers, as well as enriching its media industry expertise.
Avi Cohen, CEO of RR Media, commented: "The acquisition, along with the recent acquisition of ESS and the previous acquisitions made in recent years, form essential elements of our strategy to increase the scale of the company expanding our global presence, growing our smart global distribution network and content management services, expanding our service offering, enhancing our mix of premium customers and leveraging world-wide industry expertise. This acquisition is expected to contribute to our bottom line in 2015 and beyond."
David Hochner, Chief Executive Officer of Satlink Communications, said of the acquisition: "We believe it is the right decision to join a leading global media services provider like RR Media. Our customers will benefit from a greater scale of state-of-the-art digital media service capabilities, technologies and customer support that would enable our customers to monetize their content further through expanded audience reach and viewing possibilities."
Hochner will remain in the combined organization and will serve on the RR Media management team.
As a result of the acquisition, RR Media expects to generate incremental revenue of approximately US$25 million and adjusted EBITDA of US$ 5 million in 2016. The business and operational integration is planned to be completed by the end of this year. Management anticipates incurring US$ 700,000 in transaction expenses, booked in the second quarter, and approximately US$ 1 million in integration-related expenses, booked during the remainder of 2015.
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