Technology-focussed private equity firm Viola Group has upped its stake in Israeli satellite transmissions business RRSat Global Communications to 28.6%.
The company acquired 6.6% of RRSat’s stock from Israeli communications investment firm Kardan…
Technology-focussed private equity firm Viola Group has upped its stake in Israeli satellite transmissions business RRSat Global Communications to 28.6%.
The company acquired 6.6% of RRSat’s stock from Israeli communications investment firm Kardan Communications for approximately US$9.4m.
The move is the result of a series of share purchase agreements that Viola signed with RRSat shareholders in April 2013 and which could see it ultimately owning 36% of the company.
Under the agreement, Viola initially purchased a 15% holding from Kardan and a 7% stake from RRsat’s founder, director and former CEO David Rivel.
As part of the transaction, Viola signed a joint control agreement with RRSat’s principal shareholder Del-Ta Engineering, which owns 39.26% of the company. Both companies can each nominate four directors to the board, alongside one independent director.
Commenting on the latest investment, RRsat’s chief executive Avi Cohen said: “The increased ownership position reflects a significant, ongoing vote of confidence by a leading private equity investment group.”
RRSat announced its full year results in March, reporting a 7.4% year-on-year rise in revenues to US$121.8m and an 8.9% rise in gross profit to US$29.5m. Adjusted EBITDA, though, fell slightly from US$18.9m to US$18.7m.
