Viola Group, which manages $2 billion, is acquiring a large stake in RRsat Global Communications Network Ltd. (Nasdaq:RRST), a provider of content management and transmission services to television and radio stations. Viola has signed an agreement to acquire 13% of the company from Kardan NV (TASE: KRNV;AEX:KARD) and 7% from founder David Rivel. Viola Group will appoint a director to RRsat's board after the deal is closed. The deal totals $28 million, at $8 per share, which compares with a closing price of $7.60 on Friday.
Three of Viola Group's funds will participate in the deal: Viola Private Equity; Viola Credit (formerly Plenus Venture Lending Fund; and Viola Partners (formerly VPartners). The deal will close within months, subject to several conditions.
RRsat provides content management and transmission services worldwide via satellite, fiber optics, and the Internet. The company owns several teleports around the world, including one at Emek Ha'Ela in Israel. The company provides services to more than 630 television and radio channels in 150 countries. Its customers include NBC, Fox Sports, CNN, ESPN, and Channel 2's Keshet Broadcasting Ltd. and Channel in Israel. Content is distributed 24/7. Annual revenue is $113 million.
Rivel founded RRsat in 1981. It has over 250 employees. Shareholders include Del-Ta Engineering Equipment Ltd. (39%), Kardan (24%), and Rivel (12%).
Viola Group founder and Viola Private Equity general partner Harel Beit-On said, "RRsat has strong growth potential, thanks to its experienced management, operational excellence, financial soundness, and of course, its attractive business model. Cooperation between Viola's funds will enable us to acquire a substantial stake in the company, and we are pleased at the opportunity to support its further growth through cooperation with its current shareholders. We believe that it will be right to combine organic growth with additional acquisitions by the company."
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2013
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