US co Avid to pay $60m for Israel's Orad

deal  merger  picture: photo to go
deal merger picture: photo to go

Orad Hi-Tec Systems provides 3D real-time graphics, video servers and related asset management solutions.

US-based Avid (Nasdaq:AVID) is buying Israeli company <A target=new href=http://www.orad.co.il/>Orad Hi-Tec Systems Ltd.</a> (XETRA: <a href=Javascript:viewInstrument('OHT',3,'EN')>OHT</a>), based in Kfar Saba. Avid is paying €5.67 per share in an all-cash transaction, valuing Orad at about $60 million. Orad's share price is up some 36% in Frankfurt, at €5.46.

Orad provides 3D real-time graphics, video servers and related asset management solutions. Avid says that it expects that the combined company will further its position as the most comprehensive provider of content creation to distribution workflows for broadcast and media customers around the world. The transaction will be financed by a new $100 million senior subordinated credit facility.

"We have followed Orad's success in the market for many years and are excited about the prospects of what our combined companies can accomplish," said Avid chairman, president and CEO Louis Hernandez, Jr. "Our industry is in a period of significant transition, in which our customers are demanding a single platform to connect creation with collaboration, asset protection, distribution and monetization. We believe this transaction further differentiates Avid as the partner with the most comprehensive solution, and accelerates our momentum as we enable our customers to operate more efficiently and profitably," Hernandez added.

"Avid has a long-standing heritage of industry leadership, and it's clear that both Avid and Orad have a common commitment to innovation and customer success," Orad president and CEO Avi Sharir, adding, "Our solutions are highly complementary to the Avid product suite, and together we believe we can create the most comprehensive solution for the media industry. Further, Avid's global scale and distribution network provide significant opportunities for customer support, growth and market expansion. We are confident that joining the Avid family will create more powerful opportunities for our customers, partners, and employees."

The transaction is subject to customary closing conditions, including approval by 75% of Orad's shareholders and closing is expected to take place in June 2015. A majority of Avid's shareholders has agreed to vote in favor of the transaction.

Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

deal  merger  picture: photo to go
deal merger picture: photo to go
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