Avid To Buy Orad Hi-Tec For EURO5.67 Per Share In Cash

(RTTNews) - Avid Technology Inc (AVID) on Sunday said it has agreed to buy Israel-based Orad Hi-Tec Systems Ltd for EURO5.67 per share in cash, which, at today's exchange rate equals about $60 million, net of estimated cash acquired.

Orad, based in Kfar Saba, Israel, is a provider of real-time 3D broadcast graphic, video server, and media asset management solutions including news, sports production, elections and special events, and virtual advertisement. Orad is listed on the Frankfurt stock exchange.

Avid said the deal is to be accretive on an adjusted EBITDA and cash flow basis, and will be financed by a new $100 million senior subordinated credit facility.

The deal is subject to customary closing conditions, including approval by 75 percent of Orad's shareholders and closing is expected to take place in June 2015.

Avid said the deal is consistent with its growth strategy and would add key content creation and media management solutions to the Avid MediaCentral Platform.

The merger, Avid said, is anticipated to further its position as the most comprehensive provider of content creation to distribution workflows for broadcast and media customers around the world.

"We have followed Orad's success in the market for many years and are excited about the prospects of what our combined companies can accomplish," said Louis Hernandez, Jr, CEO of Avid.

"We believe this transaction further differentiates Avid as the partner with the most comprehensive solution, and accelerates our momentum as we enable our customers to operate more efficiently and profitably."

Avid has entered into voting agreements with holders of a majority of Orad's outstanding shares of capital stock, pursuant to which they agree to vote in favor of the deal.