[Via Satellite 06-09-2015] RR Media has agreed to acquire SatLink Communications for $19 million, subject to certain adjustments. The purchase, which follows the recent acquisition of Eastern Space Systems (ESS), is expected to expand RR Media’s global content distribution network and content management footprint, as well as add significant upper-tier customers.
SatLink CEO David Hochner will join RR Media’s management team and will help guide the transition. RR Media plans to offer customer service and digital media services to all existing SatLink customers, including expanded content distribution, content management and preparations services, online video services and sports and live event solutions. The company expects to generate incremental revenue of approximately $25 million and adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $5 million in 2016. Completion of business and operational integration is anticipated by the end of this year. Management anticipates incurring $700,000 in transaction expenses, booked in the second quarter, and approximately $1 million in integration-related expenses, booked during the remainder of 2015.
“As a result of the two recent acquisitions and due to the adverse effects of certain exchange rate and business conditions in some geography, we are updating our full-year guidance. We expect 2015 revenues to be between $140 million to $148 million. Further, we forecast our revenue for 2016 to be between $161 million to $171 million. In addition, we are updating our full year 2015 adjusted EBITDA guidance to be between $17.6 million and $20.4 million and expect that most of the synergy effects of this acquisition will show in 2016 with an increase of 25 percent to 30 percent in our EBITDA,” said Avi Cohen, CEO of RR Media.
The post RR Media Buys SatLink Communications for $19 Million appeared first on Via Satellite.