BURLINGTON, MASS.—Avid announced that it signed a definitive agreement to acquire Orad Hi-Tec Systems Ltd., a Frankfurt stock exchange-listed public company with its headquarters in Kfar Saba, Israel, for €5.67 ($US6.00) per share in an all-cash transaction valued at US$60 million. Orad is a provider of 3D real-time graphics, video servers and related asset management. The acquisition is consistent with Avid’s stated growth strategy and Avid believes it will continue to deliver on the company’s Avid Everywhere strategy by adding key content creation and media management solutions to the Avid MediaCentral Platform.
Avid expects the transaction to be accretive on an Adjusted EBITDA and cash flow basis, and will be financed by a new $100 million senior subordinated credit facility.Under the terms of the definitive agreement, Avid has agreed to pay €5.67 (US$6.00) in cash for each share of Orad common stock which, at today’s exchange rate equals approximately $60 million, net of estimated cash acquired.
“We believe this valuation represents an approximate 6x multiple of EBITDA, net of estimated cost synergies leveraging our platform thus generating attractive economics for us and a richer, more efficient experience for our customers,” said John Frederick, Avid’s executive vice president, chief administrative and financial officer.
The transaction is subject to customary closing conditions, including approval by 75 percent of Orad’s shareholders and closing is expected to take place in June 2015. Avid has entered into voting agreements with holders of a majority of Orad���s outstanding shares of capital stock, pursuant to which they agree to vote in favor of the transaction. Avid intends to fund the purchase price with a $100 million secured term loan for which it has received a financing commitment.
The latest product and technology information
Future US's leading brands bring the most important, up-to-date information right to your inbox
Thank you for signing up to TV Tech. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.