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Avid to acquire Orad Hi-Tec Systems

Avid has signed a definitive agreement to acquire Orad Hi-Tec Systems, for €5.67 per share in an all-cash transaction.

Avid has signed a definitive agreement to acquire Orad Hi-Tec Systems, for €5.67 per share in an all-cash transaction. Orad is a Frankfurt stock exchange-listed public company with its headquarters in Kfar Saba, Israel. The deal was announced at NAB last week.

Orad is a provider of 3D real time graphics, video servers and related asset management solutions. The transaction is consistent with Avid’s growth strategy, and the company believes it will continue to deliver on its Avid Everywhere vision, by adding key content creation and media management solutions to the Avid MediaCentral Platform.

Avid expects that the combined company will further Avid’s position as a provider of content creation to distribution workflows for broadcast and media customers, and believes the addition of Orad’s products to the Avid platform will enhance the value of the platform to Avid customers. 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 (pictured), 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 monetisation. 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,” added 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.”

Under the terms of the agreement, Avid has agreed to pay €5.67 in cash for each share of Orad common stock which, at today’s exchange rate equals approximately $60 million, net of estimated cash acquired. The transaction is subject to customary closing conditions, including approval by 75 per cent of Orad’s shareholders and closing is expected to take place in June 2015.