Sintec Media, which develops software for managing television networks, will lay off dozens of employees at its center in Givat Shaul, sources inform "Globes." Over 60 employees, including senior executives, have received summons to pre-dismissal hearings in recent days. The Israeli company, which was acquired last year by US private equity fund Francisco Partners for $400 million, currently has 350 employees in Jerusalem and Tel Aviv, many of whom are programmers from the haredi (ultra-Orthodox Jewish) sector.
The company, founded 17 years ago, offers a solution for management solution for television stations and broadcasting concerns. Its software manages programs, production broadcasting schedules, advertising, accounts, and regular business of broadcasting concerns, and enables them to consolidate activities that previously required separate software. It also facilitates modular use as needed, and consequently appeals to broadcasting networks of different sizes.
The company has achieved global success. Its users include leading broadcasting companies such as BBC, ABC, and NBC. In Israel, it provides services only to Reshet and Channel 10. Even after the acquisition, however, its Israeli founders made sure that the company would retain its center in Givat Shaul. A large proportion of Sintec Media's employees works on developing software and customer service for the company's various global customers.
Sintec has grown through mergers and acquisitions over the years. Its most significant such move was the acquisition of Pilat Media, its main competitor in Israel, which had similar activity. Six months after being sold to Francisco Partners, it acquired Operative Media, which specializes in the digital sector. The merger was designed to enable television companies with digital channels to manage their services on a single platform. It appears that the new solution requires fewer personnel, and some of the work will now be carried out by algorithms.
Sintec said in response, "The company is restructuring in order to enhance the efficiency of its activity and increase its growth, while providing the next generation of solutions for managing broadcasting systems on linear and digital platforms. Unfortunately, in addition to the investments that the company is making in its new deployment, it is being forced to reduce its workforce to some extent, including in Israel. Activity in Israel will continue to be a center of excellence for the company. Sintec Media will merge some of its acquisitions and consolidate part of its activities for a more efficient global organization, while increasing its investments in new products and support of its flagship product."
Published by Globes [online], Israel Business News - www.globes-online.com - on December 17, 2017
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