SES S.A. (NYSE Paris:SESG) (LuxX:SESG) unit SES Platform Services GmbH (SES PS) is acquiring Israeli digital media services provider RR Media Ltd. (Nasdaq:RRM) for $242 million. SES will pay $13.291 per share for a 100% stake. This is a 52% premium on RR media's closing price on Wall Street yesterday. The acquisition is subject to regulatory approvals, which are expected to be completed before the end of the third quarter of 2016.
Lod based RR Media provides scalable, converged digital media services to more than 1,000 media companies globally. Every day, the company manages and delivers over 24,000 hours of broadcast content, over 4,000 hours of online video and VOD content and over 350 hours of premium sports and live events including major global sporting events such as the Super Bowl and the FIFA World Cup. RR Media provides coverage for over 95% of the world’s population, reaching viewers of multi-platform TV operators and populating content to over 100 Video-on-Demand (VoD) platforms, as well as delivering content to online video and Direct-to-Home (DTH) services.
The deal is a major boost for Rapac Communication and Infrastructure Ltd. (TASE: RPAC), which holds a 34% stake in RR Media and Viola Private Equity, which has a 29% stake. "Globes" first reported that Munich-based SES was in talks to buy RR media last September.
By providing a complete range of digital media services, RR Media enables the richest possible user experience, expands audience reach and increases monetization capabilities for its customers. The company’s services cover four main areas: global content distribution network with an optimized combination of satellite, fiber and the Internet; content management and playout services; management and delivery of premium sports, news and live events around the world; and other advanced online video services. This offering supports the diverse service requirements of some of the world’s leading media companies, broadcasters and content rights owners holders including the BBC, Disney, Fox, IMG, ITV, MP Silva, NFL, and Viacom. RR Media operates from four principal media centers (in Bucharest, London, Pennsylvania and Tel Aviv).
On completion of the transaction, RR Media and SES PS will be combined to create a new, stand-alone media services provider, offering full continuity and enhanced service to their existing customers. With a comprehensive range of innovative video and media solutions on a global scale, the new organization will focus on offering its customers highly optimized content management and distribution solutions that utilize the combined network of SES PS and RR Media leveraging their multiple satellite positions as well as a large fiber network and the Internet, in order to maximize audience reach and add monetization capabilities.
RR Media CEO Avi Cohen said, “SES Platform Services is an important industry player with the capabilities to service strong upper tier clients. With the combined infrastructure and industry expertise, the integrated company will have the capability to deliver innovative solutions to top tier clients, emerging markets and global customers. RR Media’s growth strategy has focused on top tier client and increasing scale. This deal achieves both of these strategic goals.”
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2016
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