SES has announced the successful completion of the merger of RR Media, a provider of global digital media services, with its wholly-owned subsidiary, SES Platform Services. The merged company will operate as MX1.
SES has acquired RR Media for $13.291 per share, leading to an enterprise value of $242.2 million. The transaction was completed following satisfaction of the closing conditions and receipt of the necessary regulatory approvals.
Trading in RR Media’s ordinary shares on the Nasdaq Stock Exchange has been halted as of start of trading on Wednesday, 6 July 2016 and will be suspended effective as of the close of trading on that same day.
The merged company, which will operate as MX1, will enhance and scale up SES’s existing video capabilities to deliver and monetise video services across linear and non-linear platforms. MX1 will leverage the global networks and cloud technologies of both companies to offer a full suite of innovative digital video and media end-to-end solutions for the world’s leading media businesses, which will further strengthen SES’s leadership in the global video market.
MX1 will work with leading media businesses to transform content into the ultimate viewer experience for a global audience and provide video expertise and capabilities such as highly optimised content management and distribution services.
Together, MX1 will distribute more than 1,000 TV channels, manage the play out of 440 channels and deliver syndicated content to more than 120 leading subscription VOD platforms. The new company has 16 offices worldwide and operates six state-of-the-art media centres, enabling customers to reach billions of people around the world.
MX1 will be led by the newly named CEO Avi Cohen, who was previously the CEO of RR Media. Together with HD Plus, another SES subsidiary responsible for the leading HD platform in Germany, MX1 will be part of the SES Media Solutions led by Wilfried Urner.
“We are confident that the new MX1 will leverage the expertise and success they have garnered in their respective key markets to expand their product portfolio. The addition of MX1 to the SES group is a first step in globalising SES’s video services business and in accelerating the completion of our goal to become one of the leading next generation media service providers,” said Urner, CEO of SES Media Solutions.
“This is an exciting day for us as we introduce a new company to the industry and our new brand name and logo. MX1 enables new richer viewers’ experiences, the widest audience reach, and new business models for broadcasters, rights holders, sports organisations and distributors,” said Avi Cohen.
“We deliver these experiences like no one else, with unrivalled expertise, an unmatched range of capabilities, proven flexibility, and an enhanced global presence. This merger allows us to scale-up on a global basis and become the world’s leading media services provider, delivering next-generation digital video and media solutions to our worldwide customers. Closer to them, wherever they are, we enable them to optimise their media and deliver it to global audiences like never before.
“MX1 brings a new kind of business to the market, serving global customers as a complete end-to-end media experience provider. We look forward to presenting our new complete global offering and the management team at IBC Amsterdam in September,”