Pilat Media Global (AIM: PGB; TASE: PLMG), a supplier of business management software for broadcasters around the world, announced today that it has acquired ML Software BV (known as Media-Line), a Dutch supplier of software solutions for airtime advertising sales. The up-to-€3.5 million acquisition will be funded from Pilat Media’s existing resources.
Media-Line is a private company that was founded in 1997 and currently has 19 employees, all based in Amsterdam.
Twelve European clients are currently using the Media-Line software, supporting advertising sales on over 150 TV and radio channels. These clients include SBS 6 (Holland), SBS Belgium, SBS MTM (Hungary), Jetix Europe BV (Holland), Vlaamse Media Maatschappij (Belgium), IP Multimedia AG (Switzerland), Digital Media Sales/ Digitex (UK), Magyar Televísió (Hungary), Prima TV (Romania), CRS (representing 13 regional channels - Holland), and RTL Televizija (Croatia).
Pilat Media Global will pay a maximum of €3.5 million, comprising and initial payment of €1.9 million in cash and the issue and allotment by the company to the vendors of 1,664,272 new ordinary shares of £0.05 each in the company. An additional consideration of up to €500,000 in cash may be payable dependent on 2006 performance, defined mainly in terms of revenue growth.
For the year ended 31 December 2005, Media Line generated revenue of €2.24 million, compared with €1.35 million in 2004, and a pre-tax profit of €676,000, compared with €277,000 in 2004. Net assets at 31 December 2005 amounted to €1 million. Based on the current order book and sales pipeline, the company's directors expect continued growth for 2006.
Media-Line’s main product, MediaPro, is suited for smaller and medium size broadcasters and can also support independent sales houses, which sell airtime for a number of different broadcasters. It is a smaller scope product when compared with Pilat Media's IBMS, focusing on advertising sales only and designed to support less complex airtime sales operations.
Pilat Media stated that it believes these attributes, as well as Media Line's established presence in central and eastern Europe, make it an effective platform for Pilat Media to broaden its offering, expand its target market and accelerate its growth, especially at this time when much of the company's efforts are dedicated to the larger IBMS clients and to North America.
Pilat Media CEO Avi Engel said, "We are pleased to have concluded this transaction quickly and amicably with Media-Line. It is an important niche acquisition that can contribute to accelerating our growth in revenues and earnings per share as well as increase our marketing reach and service flexibility."
Published by Globes [online], Israel business news - www.globes.co.il - on Monday, February 20, 2006