Avi Cohen CEO RRsat
Image credit: RRsat

[Via Satellite 09-04-13] RRsat Global Communications Networks (RRsat) is aiming to have a more global presence over the next year. The company, which announced the acquisition of JCA (a London-based provider of content management services), wants to become a global player with local presence in selected locations and markets.

Avi Cohen, CEO, RRsat told Via Satellite that the company saw three key areas for growth in the future: Russia, the United States and Western Europe. “In the United States we have recently acquired SM2 that gave us an expanded local presence, as well as access to top-tier North American customers. During 2013, we opened an office in Moscow, augmenting our access to customers in Russia and the Commonwealth of Independent States,” he said. “Now, we are establishing a strong foothold in Europe, specifically in London, one of the world’s largest centers for media and broadcasting. The continued execution of this strategy will allow RRsat to expand further, effectively leveraging our global distribution infrastructure. These are the regions that we feel represent the best growth and the next phase in our company’s growth strategy. Our focus is on creating a strong local presence in these and expanding organically as we increase our foothold in the respective regions.”

The key to acquiring JCA is improving the company’s position in Western Europe, a major target for the company. “The acquisition strengthens RRsat’s existing senior management team, as well as providing an excellent base for RRsat Europe with JCA’s established operations. In addition, the content preparation services provided by JCA are complementary to RRsat’s services and therefore provide expansion of the end-to-end solution that we provide to our customers,” Cohen added.

During the financial year 2011-2012, the company achieved revenues of around $113 million and its guidance for the financial year 2012/13 was between $120-125 million, as well as improving its margin. “So far we are doing well, and considering the performance of the recent quarters we are sticking to the guidance for this financial year. Of course each year we aim to grow profit and revenue, and this year we are on course to do so,” Cohen said.

One of the main challenges for RRsat over the next 12 months, will be making the JCA acquisition work. Cohen admits that an acquisition “is always a tricky time” for any company, and highlighted issues such as culture, location and management teams having to be negotiated. “In the case of this acquisition, the work to integrate the two organizations starts here. We have a talented management team coming on board, which will help the transition, and I am hugely confident that the two cultures will gel,” he said.

The acquisition of JCA cost RRsat around $13.5 million. In terms of whether the company is looking for further acquisitions, Cohen adds, “At the present moment we are fully committed and focused on ensuring the integration of JCA into our team is as streamlined as possible. Our growth strategy means we will always be on the look out for assets to add to our business, whilst maintaining our emphasis on strong organic growth. In this case this takes the form of nurturing and supporting the integration of JCA into RRsat and the subsequent rebrand to RRsat Europe.”