RRsat acquires JCA

RRsat Global Communications Network, a provider of digital content management and global content distribution service, has confirmed the acquisition of JCA, a London-based provider of content management services. The acquisition is expected to be accretive to RRsat’s earnings within the first full operational quarter post acquisition.

RRsat is acquiring 100 per cent 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.

“This acquisition and the formation of RRsat Europe Ltd. are important milestones in the implementation of our strategy to become a global company with local presence, closer to our clients,” commented Avi Cohen, RRsat CEO. “There are two major aspects to our business: content management and content distribution. While the content distribution aspect involves our state-of-the-art facilities in the US and Israel, content preparation and management require a local presence working closely with our customers. The addition of JCA’s sophisticated local operation in London will enable RRsat to leverage local talent and provide services specifically for content preparation and content management to customers in Europe. This is an important asset that will expand our scope of services and we are confident that it will enhance our leadership position in the market.”

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