Avid (Nasdaq: AVID) has signed a definitive agreement to acquire Orad Hi-Tec Systems Ltd., a Frankfurt stock exchange-listed public company with its headquarters in Israel, for $60 million in cash (€5.67 per share).
Orad Hi-Tec Systems Ltd. helps broadcasters manage real-time 3-D graphics and video storage. Avid says that it expects that the combined company will further its position as the most comprehensive provider of content creation to distribution workflows for broadcast and media customers around the world.
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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.
“We have followed Orad’s success in the market for many years and are excited about the prospects of what our combined companies can accomplish, ” said Louis Hernandez, Jr, Chairman, President, and CEO of Avid. “Our industry is in a period of significant transition, in which our customers are demanding a single platform to connect creation with collaboration, asset protection, distribution and monetization. We believe this transaction further differentiates Avid as the partner with the most comprehensive solution, and accelerates our momentum as we enable our customers to operate more efficiently and profitably.”
“Avid has a long-standing heritage of industry leadership, and it’s clear that both Avid and Orad have a common commitment to innovation and customer success, ” said Avi Sharir, CEO and President of Orad. “Our solutions are highly complementary to the Avid product suite, and together we believe we can create the most comprehensive solution for the media industry. Further, Avid’s global scale and distribution network provide significant opportunities for customer support, growth and market expansion. We are confident that joining the Avid family will create more powerful opportunities for our customers, partners, and employees.”
