AIRPORT CITY BUSINESS PARK, Israel, April 23,
2013 /PRNewswire/ --
RRsat Global Communications Network
Ltd.(NASDAQ:RRST),
a leading provider of comprehensive digital content management and
global distribution services to the television and radio
broadcasting industries, announced today that Viola Group, a
leading innovative private equity investment group focused on
technology based growth opportunities in Israel withclose to$2 billion under
management, entered into agreements with two of RRsat's principal
shareholders to acquire approximately 20% of RRsat's outstanding
shares for a price per share of approximately $8.
On April 4, 2013, Viola Group
entered into a series of agreements to acquire approximately 13% of
RRsat's shares from Kardan Communications Ltd. and approximately 7%
of RRsat's shares from David Rivel,
RRsat's founder, director and former Chief Executive Officer.
Following the consummation of the transactions, Kardan will
continue to own approximately 11% of RRsat's shares and
David Rivel will continue to own
approximately 5% of RRsat's shares. RRsat is not a party to the
agreements and is not issuing Viola Group any new shares in the
transactions.
In connection with the transactions, Viola Group has also
entered into shareholders agreements with each of Kardan,
David Rivel and Del-Ta Engineering
Equipment Ltd., the holder of approximately 39% of RRsat's shares.
Consummation of each of the transactions is subject to various
conditions precedent, including regulatory approvals.
"These agreements represent a significant vote of confidence by
a leading private equity investment group led by an experienced
team focused on technology growth opportunities in Israel," commented Avi
Cohen, RRsat's Chief Executive Officer. "These agreements
help improve the diversification of our shareholder base, adds
another large and sophisticated shareholder and demonstrates
confidence in our business. We look forward to working with them
for the benefit of all our shareholders."
About RRsat Global
Communications
Network Ltd.
RRsat Global Communications Network Ltd. (NASDAQ: RRST) provides
global, end-to-end, digital content management and distribution
services to the rapidly expanding television and radio broadcasting
industries, covering more than 150 countries. Through its RRsat
Global Network, composed of satellite and terrestrial fiber optic
capacity and the public Internet, RRsat provides high- quality and
flexible global distribution services 24/7 to more than 630
channels reaching multiplatform operators, Internet TV and
direct-to-home viewers worldwide. RRsat also offers contribution
services for sports, news and events. In addition, more than
130 television and radio channels use RRsat's advanced
production and playout centers comprising comprehensive media asset
management services. Visit the company's website
http://www.rrsat.com.
Safe Harbor Statement
This press release contains forward
looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements
regarding (i) guidance for revenue and margins for the first
quarter of 2013 and guidance for full year 2013 revenues or any
future periods; (ii) our expectations and ability to strengthen our
offering and capabilities in order to allow us to accelerate our
growth; (iii) our expectations to generate higher margins from our
sports and events business compared to our other businesses; (iv)
our expectation that our sports and events business will be a major
contributor to our growth and that the demand for this type of
content will continue to increase globally; (v) our expectation and
ability to further improve our margins over time by changing our
product mix, coupled with more value-added services and better
utilization of our infrastructure; (vi) our ability to continue to
experience strong interest in our services, leading to new customer
wins for our digital media broadcasting services and to report
future successes; (vii) our expectation that our backlog will
materialize into revenue on the projected timeline and (viii) our
ability to continue to benefit from a strong business model,
featuring a notable percentage of recurring revenues, long-term
contracts, high renewal rate, a multi-year backlog, and strong free
cash flow.
These forward-looking statements
involve known and unknown risks and uncertain ties and are based on
current expectations, assumptions, estimates and projections about
the companies and the industry as of the date of this press
release. The company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or to changes in its expectations, except as may
be required by law. Forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ
materially from those contemplated by the forward-looking
statements, including the risks indicated in our filings with the
Securities and Exchange Commission(SEC). For more details, please
refer to our SEC filings and the amendments there to, including our
Annual Report on Form 20-F for the year ended December 31, 2012 and our Current Reportson
Form6-K.
Company Contact Information:
Shmulik Koren, CFO
Tel: +972-3-928-0777
Email: investors@rrsat.com
Investor Relations Contacts:
Brett Maas / Miri Segal-Scharia
Hayden/ MS- IR LLC
Tel: +1-646-536-7331 / Tel: +1-917-607-8654
brett@haydenir.com / msegal@ms-ir.com
SOURCE RRsatGlobal Communications Network Ltd