European satellite TV provider M7 Group has continued its aggressive expansion strategy with the acquisition of the KabelKiosk platform from satellite operator Eutelsat.
Via its German subsidiary, M7 Deutschland, the company has agreed to purchase…
European satellite TV provider M7 Group has continued its aggressive expansion strategy with the acquisition of the KabelKiosk platform from satellite operator Eutelsat.
Via its German subsidiary, M7 Deutschland, the company has agreed to purchase Eutelsat visAvision GmbH, the entity that operates the KabelKiosk platform of digital channels and interactive services for cable and IPTV networks in Germany.
Financial details were not disclosed, although Eutelsat did state that KabelKiosk generated approximately €25m of revenues in the 2012-2013 financial year.
The transaction includes a long-term agreement for the lease of multiple transponders on Eutelsat 9A, which is co-located with Ka-Sat at the 9E orbital position. KabelKiosk currently uses 9 transponders on the satellite while M7 leases two transponders to broadcast its recently established pay-TV platform in Hungary, AustriaSat Magyarország.
Eutelsat will also continue to provide uplink services for the KabelKiosk platform from its teleports in Italy and France.
In addition, the two parties have agreed to establish a strategic partnership to work together on hybrid solutions combining DVB and IP and multi-screen applications. This is an area that Eutelsat wants to build its expertise in.
Commenting on the sale, Michel de Rosen, chairman and CEO of Eutelsat, said: “Having built a strong video distribution platform in Germany it is now time for a new shareholder to drive KabelKiosk forward as it embarks on a new chapter of expansion.
Following the recent launch by M7 of its new Hungarian pay-TV venture from our 9E video neighbourhood, the transaction announced today strengthens our relationship with the M7 group of companies.”
Kees Färber, managing director of M7 Deutschland, added: “The acquisition of KabelKiosk is an excellent opportunity for us to enter into the German market for TV platform operators. We are confident that KabelKiosk will further grow its existing cable business, as well as achieve additional growth through the exciting new opportunities provided by the new IPTV and OTT delivery platforms.”
Established in Luxembourg in October 2009, M7 Group has rapidly grown its pan-European pay-TV business through a series of bolt-on acquisitions.
The company, which is owned by private equity firms Providence Equity Partners and Airbridge Investment, now operates in the Netherlands, Belgium, Luxembourg, Austria, the Czech Republic and Slovakia. The group has also been linked with potential acquisitions in Ukraine and Romania.
The KabelKiosk transaction remains subject to regulatory approvals and other customary conditions and is expected to close in July.
EY provided financial advice to Eutelsat on the deal, while Heuking was its legal adviser.
