SES Platform Services To Acquire RR Media, Merge Operations
SES Platform Services GmbH (a wholly-owned subsidiary of SES S.A.) has agreed to a deal to acquire RR Media, a provider of global digital media services to the broadcast/media industries, and merge its operations with those of SES PS. SES will pay a consideration of USD 13.291 per share to acquire a 100% interest in RR Media, totaling an Enterprise Value of $242 million, which will be funded from the group’s existing financial resources. The acquisition is subject to regulatory approvals, which are expected to be completed in Q2/Q3 2016.
RR Media provides scalable, converged digital media services to more than 1,000 media companies globally. Every day, the company manages and delivers over 24,000 hours of broadcast content, over 4,000 hours of online video and VOD content and over 350 hours of premium sports and live events including major global sporting events such as the Super Bowl and the FIFA World Cup. RR Media provides coverage for over 95% of the world’s population, reaching viewers of multi-platform TV operators and populating content to over 100 Video-on-Demand (VoD) platforms, as well as delivering content to online video and Direct-to-Home (DTH) services.
“RR Media has successfully developed the capability to manage and deliver premium content effectively, helping its customers to reach a global audience over multiple satellite, cable TV, IPTV, online and mobile platforms,” says Wilfried Urner, CEO of SES Platform Services. “SES, as the largest global platform for video in terms of reach and channels, adds global scale and considerable insights from the successful development of SES PS in Europe.”
RR Media’s services cover four main areas: global content distribution network with an optimized combination of satellite, fibre and the Internet; content management and playout services; management and delivery of premium sports, news and live events around the world; and other advanced online video services. This offering supports the diverse service requirements of some of the world’s leading media companies, broadcasters and content rights owners holders including the BBC, Disney, Fox, IMG, ITV, MP Silva, NFL, and Viacom. RR Media operates from four principal media centres (in Bucharest, London, Pennsylvania and Tel Aviv).
“This is an exciting acquisition and an important milestone in the execution of SES’s differentiated strategy focused on Globalization, Verticalization and Dematuring,” says Ferdinand Kayser, Chairman of SES Platform Services. “The addition of RR Media further accelerates the globalization of SES’s services businesses, establishing a world-leading next generation video and media service provider.”
On completion of the transaction, RR Media and SES PS will be combined to create a new, stand-alone media services provider, offering full continuity and enhanced service to their existing customers. With a comprehensive range of video and media solutions on a global scale, the new organization will focus on offering its customers highly optimized content management and distribution solutions that utilize the combined network of SES PS and RR Media, leveraging their multiple satellite positions as well as a large fibre network and the Internet, in order to maximize audience reach and add monetization capabilities.
“SES Platform Services is an important industry player with the capabilities to service strong upper tier clients,” says Avi Cohen, Chief Executive Officer of RR Media. “With the combined infrastructure and industry expertise, the integrated company will have the capability to deliver innovative solutions to top tier clients, emerging markets and global customers. RR Media’s growth strategy has focused on top tier client and increasing scale. This deal achieves both of these strategic goals.”