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.