Posts Tagged ‘broadcast traffic and billing’

Francisco Partners Acquires SintecMedia

Analysis, Broadcast Vendor M&A | Posted by Josh Stinehour
Apr 27 2016

Sintec and FP logo

Francisco Partners has acquired SintecMedia, a well-known provider of broadcast business management software.

Financial details of the transaction were not made public. However, according to Reuters, the deal was valued at approximately $400 million.

Francisco Partners is a technology-focused private equity firm.  Francisco has existing familiarity with the media technology sector having purchased Grass Valley from Technicolor in January 2011 .  Francisco operated Grass Valley for nearly four years before exiting the investment in 2014 with Grass Valley’s sale to Belden.

SintecMedia had been owned by private equity firm Riverwood Capital.  Riverwood acquired SintecMedia in 2010 from existing venture capital investors including Walden Israel and Sequoia Capital.  Riverwood then supported SintecMedia through a series of acquisitions including Argo Systems , StorerTV , and more recently Broadway Systems.  In early 2014 Riverwood provided almost half the financing to support Sintec’s acquisition of competitor Pilat Media in a transaction valued at $103.5 million.

In the press release announcing the transaction, CEO and co-Founder of SintecMedia Amotz Yarden, stated, “Nothing is changing in SintecMedia’s business operations. We will continue to play a pivotal role in the way advertising is bought, sold and managed in the diverse media industry and our customers will continue to receive future-proof technological continuity combined with our innovative aptitude and deep domain expertise. I look forward to many years of exciting growth.”

Matt Spetzler from Francisco Partners added, “We have followed SintecMedia for over six years and are thrilled to back the company and its management team as they continue to consolidate their leading position in helping media companies monetize their assets. The broadcast and media industries are entering a phase of innovation and change and SintecMedia is uniquely positioned to help customers capitalize on this opportunity with a strong market position and new products.”

 

Related Content:

Press Release: Francisco Partners Acquires SintecMedia

 

 

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Broadcast Vendor M&A: SintecMedia to Acquire Pilat Media for £63.3 million

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Jan 17 2014

In a move that further would concentrate the broadcast business management (aka traffic & billing) market, SintecMedia and Pilat Media have announced the terms of a recommended proposal whereby SintecMedia will acquire Pilat.

Under the terms of the proposed deal, SintecMedia plans to acquire the shares of Pilat that it does not already own in an all cash deal that values Pilat at £63.3 million ($103.5m).

PE firm Riverwood Capital Management, which owns SintecMedia, will provide 49% of the financing, with the remainder funded from the existing resources of the SintecMedia Group, including (to the extent required) pursuant to a pre-existing debt facility made available to SintecMedia by Bank Leumi.

SintecMedia says its strategic plan for the Pilat business is “to gradually integrate certain functions where appropriate to realize synergies and economies of scale; but as both companies face growing demand for their products and services and, given their backlogs of work, this is unlikely to affect the vast majority of positions and staff across the two companies.”

 

Second Attempt at Merger Between SintecMedia and Pilat Media

This is not the first time that Sintec and Pilat have flirted with combining the companies.

In 2009, SintecMedia mounted a similar bid to takeover of Pilat Media, but was unable to gain the required approval of 75% of Pilat’s shareholders.

The 2009 deal valued Pilat Media at £16.3m, or about 25% of the offer currently on the table.

Once again, the newly announced deal must achieve approval from 75% of Pilat Media’s shareholders.

However, this time around the companies should have an easier time gaining this approval than they did during the time of the attempted 2009 merger.

The proposed deal already has the buy-in from Shaul Elovitch whose Eurocom Group owns 23.9% of Pilat Media, and SintecMedia already owns a further 22.7% of Pilat as a result of the attempted 2009 merger and through continued accumulation of the company’s shares.

Remaining Pilat Media shareholders with a 400% reward for their patience since rejecting SintecMedia’s 2009 overtures.  They will also be paid in cash, something pointed out by SintecMedia CEO, Amotz Yarden, who said the proposed deal represents a “substantial premium” to Pilat’s recent share value, and “the boards of SintecMedia and SMS believe that, given the economic uncertainty and market pressures facing the industry, this represents a very good opportunity for Pilat Shareholders to realize their investment in cash today.”

 

 

Third M&A Deal for SintecMedia Since Riverwood-backed Management Buyout

If the deal gains shareholder approval, it will be the third acquisition by SintecMedia since it was purchased in 2011 by PE firm Riverwood Capital Management for approximately $110m.

Sintec acquired StorerTV in January 2013, and then acquired Argo Systems a few weeks later, in an effort to bolster Sintec’s presence in the North America Market.

Whereas StoreTV and Argo Systems were relatively small deals, the tie-up with Pilat Media is a much larger and arguably transformative deal for the company, and potentially has wider ramifications in the broadcast industry as well.

By acquiring Pilat Media, Sintec will likely become one of the largest players in the broadcast business management software market, and will almost certainly be the biggest traffic & billing vendor outside of the United States where Harris Broadcast and WideOrbit are the two leading vendors.

Not only will the Pilat acquisition make SintecMedia a major player in traffic & billing, it will also transform the company into one of the larger pure-play software vendors in the broadcast space.  Both companies have more than 300 employees and a broad range of blue chip customers around the world.

 

Deal Recommended by Both Sides

Acceptance of the proposed transaction has been recommended by the boards of both companies, who said in a statement that “the management of SintecMedia and Pilat have together agreed the approach for organizing and managing the enlarged group harmoniously, leveraging the relative strengths of each organization.”

For its part, Sintec says it “attaches great importance to the skills, experience and knowledge of the existing employees of the Pilat Group, who have contributed to the success of the business to date and believes that they will benefit from enhanced career and business opportunities within the Enlarged Group,” and that “in conducting any rationalization, SintecMedia intends that the employees of the Pilat and SintecMedia groups will have equal opportunity.”

Sintec has also given assurances to the Pilat Directors that the existing employment rights (including pension and severance rights) of all Pilat Group employees will be fully safeguarded, there will be no changes in the conditions of their employment, and that SintecMedia has no any intention to change the locations of Pilat’s places of business or to re-deploy its fixed assets.

 

Management of Enlarged Company

When/if the deal closes, the board of the enlarged group will be comprised solely of existing SintecMedia directors, and the directors of Pilat Media will resign from the Pilat Board.

At that time, Pilat Media’s CEO and CFO, Avi Engel and Martin Blair, will also resign as employees of Pilat Media. Both Engel Blair will provide handover support as part of their notice period for up to one month following their resignation, and will then be released from their employment, and paid in lieu of the balance of their contractual notice period. Engel and Blair have each agreed to provide up to 15 days of additional handover assistance within the first 12 month period after the deal closes, and Engle will also enter into a consultancy agreement with SintecMedia on terms yet to be agreed.

Pilat’s Remuneration Committee has agreed to pay Engel £300,000 and Blair £40,000 respectively in recognition of their roles in effecting the acquisition. Pilat Media chairman, Michael Rosenberg, will receive £60,000 for his role in the deal.

The companies said that they expect the deal to close towards the end of Q1 2014.

When the deal closes Pilat will then be wholly owned by Sintec, and Pilat shares, which are currently traded on the AIM and TASE exchanges, will be cancelled.

 

Pilat Media’s had revenue of £23.48m for the full year 2012.  Revenue through the third quarter of 2013 was £18.69m, up 18.4% versus the same period in 2012.

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Related Content:

Proposed acquisition of Pilat Media Global plc (“Pilat”) by SintecMedia Ltd.

SintecMedia Limited 2009 Offer for Pilat Media Global

Broadcast Vendor M&A: SintecMedia Acquires Argo Systems

Broadcast Vendor M&A: SintecMedia Acquires StorerTV

Press Release: Taldan Capital Leads $110 million the Buyout of SintecMedia

Riverwood Capital Portfolio Companies – SintecMedia

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Pilat Media Acquires Remaining 40 Percent Stake in OTTilus

broadcast technology market research, Broadcast Vendor M&A | Posted by Joe Zaller
Feb 14 2013

Broadcast business management solutions provider Pilat Media announced that it has acquired from SimpleStream the 40% of OTTilus Limited that it did not already own.

OTTilus was created in 2012 as a joint venture between Pilat and SimpleStream in order to develop an enterprise class end-to-end OTT platform to support streaming, catch-up and VoD services offered by TV operators and broadcasters over the Internet.

Pilat will now own the OTTilus platform in its current state and will receive co-ownership rights in the deliverables.

According to the terms of the deal, the amounts paid and payable by Pilat to SimpleStream as part of the 2012 JV agreement and this new deal to acquire the remaining 40% of the venture, total approximately £500,000.  Pilat will also pay SimpleStream a royalty of 3% on its revenues for the next three years, up to a maximum of £500,000.

Bob Lamb, previously Pilat Media’s CTO, has been appointed as the Managing Director of OTTilus.

Avi Engel, CEO of Pilat Media, said: “We are extremely pleased that we have been able to reach this outcome for our new OTTilus subsidiary.  With the product’s development close to completion and its launch imminent, we believe OTTilus and the Company can now benefit from the simplified 100% ownership structure.”

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Related Content:

Press Release: Pilat Media to acquire remaining shares in OTTilus

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© Devoncroft Partners. All Rights Reserved.

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Broadcast Vendor M&A: SintecMedia Acquires Argo Systems

Broadcast Vendor M&A | Posted by Joe Zaller
Jan 25 2013

Traffic & billing vendor SintecMedia announced that it will acquire Argo Systems, a provider of business solutions to the cable network and operators industry.

This is SintecMedia’s second acquisition in the North American market, complementing its recent purchase of StorerTV.

Argo Systems bridges the business needs of television networks and their counterparts on the cable operator side with its Medea and Nestor systems that are installed across more than 300 cable networks and operators around the globe. DecisionPoint, an M&A advisor for middle-market technology companies, represented Argo in this transaction.

“SintecMedia’s acquisition of Argo Systems will further augment our local activities in the North American cable television and MSO markets,” stated SintecMedia CEO Amotz Yarden. “Its team and suite of products have gained the respect of every television executive in the industry. Argo Systems will increase SintecMedia’s footprint and capabilities, boost our U.S. presence in terms of local support including software engineers, technicians as well as other professionals and delivery resources that will enable us to supply a greater array of broadcast and digital media solutions.”

Argo Systems’ President Doug Calahan said, “Merging with SintecMedia is a testament to our solutions’ strengths, opens new international markets and spurs further growth in North America. Combining the products and capabilities of SintecMedia, along with its newly acquired StorerTV and now Argo Systems creates powerful platforms to take the industry into the future.”

“This acquisition represents a major step in SintecMedia’s growth strategy to raise our North American presence by investing in a combination of both acquisitions, such as this of Argo Systems and earlier this month of StorerTV as well as organic growth initiatives,” commented Amir Lavi, Executive Vice President and head of SintecMedia U.S. sales. “In a global digital market, our customers require a wide range of solutions to enhance revenues and adding Argo Systems to our comprehensive OnAir media management core advances this goal.”

SintecMedia is owned by PE firm Riverwood Capital Management, who purchased the company in 2011 for approximately $110m.

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Related Content:

Press Release: SintecMedia Acquires Pay TV Industry Expert Argo Systems

Broadcast Vendor M&A: SintecMedia Acquires StorerTV

Press Release: Taldan Capital Leads $110 million the Buyout of SintecMedia

Riverwood Capital Portfolio Companies – SintecMedia

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Pilat Media Posts Loss in Q3 2012 as Revenues Decline 3 Percent, Says Q4 Will be “Strong and Profitable”

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Dec 06 2012

Broadcast business management solutions provider Pilat Media announced that its revenue for the third quarter of 2012 was £5.32m, down 3.6% versus the same period a year ago, and down 2% versus the previous quarter. The company said the lower results were in line with its expectations and is due to the fact that much of its resources during the quarter we focused on upgrading clients to its newest generation system rather than generating new business.

Q3 revenue included £568,000 of licensing revenue for sales to both new and existing clients.  This is an increase of 14% versus the same period a year ago, and a decline of 18% versus the previous quarter.   Revenue from implementation services in Q3 was £3.4m, down 4% versus last year and essentially flat with the previous quarter.

On a geographic basis, the company’s revenue for the quarter was split out as follows:

UK:

13.4%

USA:

18.6%

Canada:

19.0%

Australia:

14.5%

Other:

34.5%

 

The net loss for the quarter was £59,000, compared to a net profit of £306,000 last year.  Operating profit in the quarter was £90,000, down from £240,000 last year.

Recurring maintenance and support fees from live clients was £1.35m down 9% versus last year. The company attributed the decline in maintenance income to the termination of its contract with FOX Television Stations Inc. In Q1 of this year, Pilat said it expects its maintenance revenues to increase in 2013, after the current projects it is implementing go live at customer sites.

Gross margins in the quarter were 48.9% versus 49.4% last year, and 49.2% last quarter.  The company attributed its declining margins to it ongoing upgrade projects at various customers, and said that its revenue mix will improve in Q4 driving higher margins in the quarter and helping the company’s margins for the full year 2012 to be on par with 2011.

R&D costs in the quarter were £1.01m, up 45% versus the same period a year ago, and up 30% versus last quarter.  The company said it is now spending “significantly: more on R&D as it invests in the development of its investment into the new IBMS:Rights and IBMS:Adapt modules.

General and administrative costs in the quarter were £1,06m down 38% versus last year and down 2% versus the previous quarter.  The company said the lower year-over-year G&A costs reflect its continuing efforts to reduce administrative overheads despite increasing the numbers of development and revenue generating staff.

Year-to-date Results:

Revenue for the first nine months of 2012 was £15.78m, down 4% versus the same period in 2012. There were two “material customers” during the period who accounted for more than 5% of revenue – one at 11.7% (£1.85m), and one at 5.3% (£836,000).

On a geographic basis, the company’s year-to-date revenue was split out as follows:

UK: 9.6%
USA: 22.2%
Canada: 19.3%
Australia: 16.6%
Other: 34.3%

 

The loss for the first nine months of 2012 was £133,000, and improvement on the loss of £1.325m for the first nine months of 2012.  The YTD operating profit was £680,000, down from an operating profit of £1.29m last year.

 

Outlook:

Pilat says that it expects to complete the license renewal negotiations with a number of its existing clients within “the next few weeks,” which it says will generate license fees in Q4 making it a strong and profitable quarter.

Company chairman Michael Rosenberg said: “The pipeline of new sales opportunities continues to include significant prospects that can convert in the next few months. The Board hopes the increased investment in expanding Pilat Media’s offering, with the Rights and Adapt modules, IBMS-Express and OTTilus will help in generating additional prospects and revenues in the Group’s existing market and in new ones the Company can now approach, leveraging its strong position. As the cash balance continues to increase the Company will intensify its search for ways to utilize cash to build value for the shareholders.”

 

 

Related Content

Press Release: Pilat Media — Results for the nine months ended 30 September 2012

Previous Quarter: Pilat Media Revenue Declines 7 Percent in Q2 2012

Previous Year: Pilat Media Announce Q3 2011 Results, Says Dispute With Fox Has Been Settled

Pilat Media and Fox Television Stations Settle Legal Dispute

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© Devoncroft Partners. All Rights Reserved.

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Pilat Media Announce Q3 2011 Results, Says Dispute With Fox Has Been Settled

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Dec 05 2011

Broadcast business management solutions provider Pilat Media reported that its revenue for the third quarter of 2011 was £5.51m, up 5.1% versus the same period a year ago.

The company posted a profit of £244,000 for the quarter, versus a loss of £53,000 during the third quarter of 2010.

Significantly, the company said it had recovered the £544,000 impairment charge it had taken as a result of litigation with Fox Television Stations (FTS).  The company also said it will be receiving a payment from FTS.

 

Year-to-date results

Revenue for the first nine months of 2011 was £16.4m, up 4.4% versus the same period in 2010.  Year-to-date gross profit was £1.29m down 8% compared to the first nine months of 2010.  After tax, the company posted a year-to-date loss of £1.33m versus a profit of £398,000 for the first nine months of 2010.

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Pilat Chairman Michael Rosenberg issued an upbeat statement saying “We are pleased to have announced the settlement of our dispute with Fox Television Stations Inc with the result that the Company will now be receiving a payment from them.  Our Q3 revenues continued to grow on the back of increased demand from our existing client base, bringing the growth over the last nine months to over 4%.  We continue to make significant investment in improving and expanding our products and this in part has enabled revenues from our existing clients to increase.  We are also engaged with a number of new potential projects but these are moving forward at a slower pace than we had envisaged and this will inevitably restrict growth for this year.“

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Related Content:

Press Release: Pilat Media Reports Results for the nine months ended 30 September 2011

Pilat Media and Fox Television Stations Settle Legal Dispute

Pilat Media Posts 1H 2011 Loss Due to Fox TV Stations Lawsuit

Pilat Media Sued by Fox Television Stations, Files Counter Claim for Breach of Contract

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The 2011 Big Broadcast Survey – Now Available

broadcast industry technology trends, broadcast industry trends, Broadcast technology channel strategy, broadcast technology market research, Broadcast Vendor Brand Research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Mar 10 2011

After many months of work, I am pleased to announce that the 2011 Big Broadcast Survey (BBS) has been completed, and that reports from the study will be published soon.

If you’re not familiar with the BBS, it’s an annual demand-side study of the global broadcast industry. BBS reports help readers improve their strategic decision making, customer engagement, marketing strategy, product planning, and sales execution.

More than 8,000 broadcast professionals in 100+ countries participated in the 2011 BBS, making it by far the largest and most comprehensive market study of the broadcast industry.

Three types of reports are available:

  • The BBS Global Market Report is the broadcast industry’s first global demand-based study of the purchasing habits of technology buyers.  This report examines industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure and operational structure, broadcast technology budgets, and HD upgrade plans for a wide variety of products.

 

  • BBS Global Brand Reports are available for more than 100 broadcast technology vendors.  These reports provide deep insight into how each company is perceived by the market, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics, through a series of league table rankings

 

  • Twenty-six separate 2011 BBS Product Reports provide detailed vendor brand ranking for individual product categories. These reports enable users to benchmark their brand directly against specific competitors through a detailed understanding of the opinions of technology buyers who purchase, specify or use each product type.  

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If you would like information about these reports and how they can help your business, please get in touch.

In addition to these paid-for reports, we will also be publishing highlights from the study on the Devoncroft website.  These articles will be posted on a semi-regular basis, so please check back often.   

You’ll also be seeing information from the 2011 BBS in a wide variety of other industry websites and trade magazines.

The tables below show the product categories and broadcast technology vendor brands covered in the 2011 BBS.

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 Product Categories Covered in the 2011 BBS:

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Broadcast Technology Brands Covered in the 2011 BBS:

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More Broadcast Vendor M&A: Wide Orbit Announces Intention to Acquire VCI Solutions

broadcast industry technology trends, Broadcast Vendor M&A | Posted by Joe Zaller
Oct 13 2010

In a move that brings together to US-based players in the business management systems market, WideOrbit today announced that it intends to acquire the Orion Business System assets of VCI Solutions.  The terms of the deal, which is expected to close on November 1, were not disclosed.

VCI Solutions has been in business for 26 years.  According to the company’s website, the Orion Business System software is a “back office” revenue and inventory management system for television stations and cable networks, completing all program and commercial scheduling from point-of-sale to point-of-air® (time content is sold right on through reconciliation).  It includes modules for sales, traffic, and accounting applications.

WideOrbit products, which manage more than $14 billion in annual advertising revenue, are used by more than 4,000 television stations, radio stations, cable networks, cable interconnects and digital out of home networks.  Company Eric Mathewson, said that the acquisition will strengthen his company’s position in the industry and enable it opportunity to reinvest more in its core products and services

VCI Founder and Chairman Lowell Putnam said “We are very comfortable with WideOrbit carrying on the work that VCI has targeted with our partners and clients,” said, of VCI Solutions. “We look forward to working with WideOrbit on transitioning our partner and client relationships.”

You can read the full WideOrbit press release here.

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