SES plans to expand media services with acquisition of RR Media

by Clayton Vallabhan | February 28th, 2016

wilfried urnerSES has announced an acquisition agreement with RR Media, a provider of media services to the broadcast and media industries. The acquisition will allow SES to merge the operations of RR Media with its own Platform Services group SES PS in order to create a larger global media solution provider.

During its 2015 earnings release, SES indicated the contract backlog of SES PS was over $328 million. The RR Media contract’s backlog as of September 30, 2015 was $262 million.

Wilfried Urner, CEO of SES PS said: “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. 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.”

SES will pay all-cash for the acquisition of 100% of the shares of RR Media at a price of $13.291 per share. The consideration equates to an Enterprise Value of USD $242 million, which represents a 52% premium to RR Media’s share price on February 25, 2016.

RR Media is expected to generate between $160 million and $170 million for the full year 2016.

The announced acquisition has already been approved by the Boards of Directors of both SES and RR Media. It remains subject to regulatory approvals and the approval of the shareholders of RR Media. The transaction is expected to close in Q2 or Q3 2016.

Avi Cohen, CEO of RR Media, said: “SES Platform Services is an important industry player with the capabilities to service strong upper tier clients. 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.”

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