What started as a vision in 2013 has transformed into a powerful platform for the entire broadcast community—Avid Everywhere. And while we’ve consistently delivered new platform solutions to do things like search and retrieve media across your entire enterprise, manage and orchestrate file-based media ingest, and deliver content to social and mobile channels and devices, we’re always looking to extend our solutions even further, so we can offer you the most comprehensive platform in the industry.
Today, we announced a definitive agreement to acquire Israel-based Orad Hi-Tec Systems, a leading provider of 3D real-time graphics, video servers, and associated workflow management solutions. We believe this acquisition will extend our Avid Everywhere vision by adding Orad’s content creation and media management solutions to the Avid MediaCentral Platform, already the industry’s most open, innovative and comprehensive media platform.
Founded in 1993, more than 600 customers worldwide rely on Orad’s cutting-edge technology to produce graphics, live events, and sports broadcasts, and we’re looking forward to expanding our portfolio and distribution network with their comprehensive line of news, channel branding, sports production and enhancement, elections and special events, virtual studios, video walls, and virtual advertisement products. What’s most exciting is these solutions are highly complementary to the current Avid product suite, which we believe will result in even more comprehensive workflows for our combined customers.
Over the next 8-10 weeks, we’ll be working closely with Orad to complete this transaction, and we look forward to sharing much more information about the integration of Orad’s solutions to the Avid MediaCentral platform as soon as they officially join the Avid family. Until then, we’ve offered below a few answers to questions you might have about the announcement.
The Orad and Avid product teams are excited for this transaction to be completed, and we can’t wait to collaborate with you as a unified team at Avid Connect 2016!
Frequently Asked Questions (FAQ)
Avid (Nasdaq: AVID) today announced that it has signed a definitive agreement to acquire Orad Hi-Tec Systems Ltd., a Frankfurt stock exchange-listed public company with its headquarters in Kfar Saba, Israel, for €5.67 per share in an all-cash transaction. Orad is a leading provider of state-of-the-art 3D real-time graphics, video servers and associated workflow management solutions. The acquisition is consistent with Avid’s stated growth strategy, and Avid believes Orad will help it continue to deliver on the company’s Avid Everywhere vision, by adding key content creation and media management solutions to the Avid MediaCentral Platform, the industry’s most open, innovative and comprehensive media platform.
The Orad solution set will extend the Avid MediaCentral Platform, allowing us offer an even more comprehensive solution to our customers, and to the media industry. By expanding the solutions we offer as part of our Artist, Media and Storage suites, we expect that media organizations on the MediaCentral Platform will be able to reduce their burden of integrating disparate fragmented solutions into their production environments, resulting in less complexity, fewer interoperability challenges, and greater efficiency and productivity.
Further, given Avid’s well-defined growth strategy and efficient operating model, Avid is well-positioned to quickly integrate new acquisitions, maximizing benefits and minimizing disruption for both Avid and our customers. With the acquisition, we expect that Avid will also gain presence in new regions, which would help us better reach and support customers and all media organizations in and around these regions.
Established in 1993, Orad is a Frankfurt stock exchange-listed public company with its headquarters in Kfar Saba, Israel and additional R&D operations in Szczecin, Poland and Surrey, UK as well as regional offices in key markets.
Orad was established around the theme of virtual advertisement in sporting events, and virtual studios. The company was one of the early inventors of those concepts and market segments. Over the years, the company grew its portfolio, offering state-of-the-art real-time graphics , video servers and associated workflow management solutions that address critical customer needs in news, channel branding, and live sports production.
Orad is at the forefront of those markets. Its achievements have been recognized by both its customers and the media, having been honored with multiple awards, including 2 Emmys. Orad has approximately 240 employees, and reported over $40 million of revenues during 2014. Orad has over 600 active customers around the world, including broadcasters such as RTL, ESPN, TF1, TV Globo, CCTV, Channel 4, HBO, DW, Canal+, Turner and Televisa and others.
For Orad customers, this transaction should come as fantastic news. Joining the Avid family means that Orad customers will become partnered with one of the largest scale players in the media technology space, with momentum and market excitement. As a naturally strong, complementary fit, we expect that Avid and Orad will be able to offer Orad customers a more comprehensive, innovative solution set powered by a platform that improves efficiency while providing complete choice and flexibility. Avid is highly growth oriented, and with its Avid Everywhere vision and MediaCentral platform, has recaptured the industry’s attention. Avid plans to actively market and support the Orad products, and its global scale should provide broader distribution and support, in more countries around the world.
As Avid has stated publicly, M&A is an important part of our growth strategy, and by leveraging the MediaCentral Platform, we are uniquely positioned to drive growth and value by making acquisitions that complement our platform offerings and allow us to broaden our reach. Specifically, we expect that acquisitions that meet our strategic criteria will allow us to grow sales of new products tightly integrated with the Avid Media Central Platform, deliver greater efficiency to our customers by putting all that is common about the acquired products onto a common services platform, and reach more customers, including customers in new markets, migrating them onto the platform.
For our customers and partners, it will be business as usual until the transaction closes and Avid and Orad will operate as two separate companies. Between the time of this announcement and the close of the transaction, we will be seeking regulatory approval and the required shareholder approval from Orad’s side for the transaction. We are confident that we will achieve both approvals.
We believe the transaction will close about 8-10 weeks after we signed the definitive agreement one we receive regulatory approval and the required approval from Orad’s shareholders.