Avid has signed an agreement to acquire Orad Hi-Tec Systems Ltd, a Frankfurt stock exchange-listed public company for EUR5.67 per share in an all-cash transaction, which is equal to about $60 million.
Orad is a provider of 3D real-time graphics, video servers and related asset management solutions. The acquisition fits with Avid’s growth strategy and will add key content creation and media management solutions to the Avid MediaCentral Platform.
“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. “Our industry is in a period of significant transition, in which our customers are demanding a single platform to connect creation with collaboration, asset protection, distribution and monetisation. 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 intends to fund the purchase price with a $100 million secured term loan for which it has received a financing commitment.