RRsat believes its acquisition of JCA will assist in its growth strategy.
Image credit: RRSat

[Via Satellite 09-03-13] RRSat, a provider of comprehensive digital content management and global content distribution services to the television and radio broadcasting industry, will pay will pay $9 million in net cash to acquire JCA, a London-based provider of content management services. The acquisition is aligned with RRsat’s growth strategy of becoming a global company with local presence in key locations. The acquisition is expected to be accretive to RRsat’s earnings within the first full operational quarter post acquisition.

“The addition of JCA’s sophisticated local operation in London will enable RRsat to leverage local talent and provide services specifically for content preparation and content management to customers in Europe,” said Avi Cohen, RRsat CEO. “This is an important asset that will expand our scope of services and we are confident that it will enhance our leadership position in the market.”

RRsat is acquiring 100 percent of the TVP Group, of which JCA is a wholly owned subsidiary. Besides the $9 million, an additional payment of $4.5 million will be deferred, conditional on business results including revenue growth and profitability in the three years following the acquisition. Management expects the acquisition to be accretive during the fourth quarter this year.