RR Media acquires SatLink Comms for US$19MN
DetailsRebecca Hawkes | 10 June 2015
Digital media services company RR Media has bought Israel's SatLink Communications for US$19 million to expand its service capabilities.
The SatLink network, which provides global content distribution, management and playout services, will be integrated into RR Media's footprint.
"This acquisition, along with the recent acquisition of ESS and the previous acquisitions made in recent years, form essential elements of our strategy to increase the scale of the company expanding our global presence, growing our smart global distribution network and content management services, expanding our service offering, enhancing our mix of premium customers and leveraging worldwide industry expertise," said Avi Cohen, CEO, RR Media.
"This acquisition is expected to contribute to our bottom line in 2015 and beyond. We have watched SatLink's accomplishments over the years and we are extremely happy to have SatLink become part of RR Media."
Following the takeover, RR Media forecasts it will generate incremental revenue of US$25 million and adjusted EBITDA of $5 million in 2016.
David Hochner, CEO, SatLink Communications, added: "In this dynamic media market, we believe it is the right decision to join a leading global media services provider like RR Media. Our customers will benefit from a greater scale of state-of-the-art digital media service capabilities, technologies and customer support that would enable our customers to monetise their content further through expanded audience reach and viewing possibilities."
Hochner will remain within the group, serving on the RR Media management team following the acquisition. The companies expect business and operational integration to be completed by the end of this year.