09.03.2013 07:15 AM
RRSAT continues global expansion with the acquisition of London-based JCA
The surprise move facilitates creation of RRsat Europe in London, one of the world’s largest media and broadcasting centers.
RRsat Global Communications Network has announced the acquisition of JCA, a London-based provider of content management services. This acquisition is fully aligned with RRsat's growth strategy of becoming a global company with local presence in key locations. The acquisition is expected to be accretive to RRsat’s earnings within the first full operational quarter post acquisition.
RRsat is acquiring 100-percent of TVP Group of which JCA is a wholly owned subsidiary. In consideration for the acquisition, RRsat will pay $9 million in net cash. An additional payment of $4.5 million will be deferred, conditional on business results including revenue growth and profitability in the three years following the acquisition. RRsat expects to record approximately $900,000 in non-recurring, acquisition-related expenses during the third quarter. Management expects the acquisition to be accretive during the fourth quarter this year.