In another example of the ongoing consolidation of the broadcast technology industry, Avid has inked a definitive agreement to acquire Orad Hi-Tec Systems for €5.67 ($5.99) per share or about $60 million net of cash acquired.
Orad is a provider of 3-D real-time graphics, video servers and related asset management solutions.
“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.”
The deal would add key content creation and media management solutions to the Avid MediaCentral Platform and strengthen its Avid Everywhere strategy of being able to supply clients with a complete range of technologies from content creation to distribution and monetization.
In announcing the deal, Avid reported that it “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.”
The transaction is subject to approval of 75% of Orad’s shareholders and is expected to close in June of 2015.