The Russian incumbent Rostelecom has entered into a legally binding agreement to buy 100% of Synterra Media from the MTT group of companies.
In a statement, Rostelecom says that the transaction will amount to R1.5 billion (€16.5 million) and strengthen its position in the professional delivery of video content. Synterra is a major player in the field and lists a large number of both local and international companies among its clients. They include Channel One, VGTRK, Russia Today, TV Center, Match TV, CTC Media, MBS, NMG; the pay-TV operators Tricolor, Orion Express, NTV+, GKS, MTS, Beeline, Megafon, Air Telecom; Eurovision, MX1, Telstra, Globecast; regional TV companies and radio stations. Its revenues in 2019 amounted to around R800 million and it had an EBITDA margin of over 40%.
Commenting on the development, Anna Shumeiko, senior VP, chief of staff of the president of Rostelecom, said: “Synterra Media is a quality asset with a stable financial condition and a stable business model. Its acquisition solves an important strategic task of consolidating the market for terrestrial TV signal delivery in the segment of corporate customers. Leading positions in this segment will allow Rostelecom to become a significant player in the adjacent market of technological services for broadcasters. We expect an improvement in the economy of the business area due to the implementation of significant synergistic potential”.
Valery Ermakov, VP for corporate and government segments, added: “Rostelecom has historically been a player in the TV content delivery market and the acquisition of Synterra Media, a federal media services operator, is a logical step in the development of the B2B segment business. The competence centre for working with the media market created on the basis of the acquired asset will allow the company to become a “single window” for receiving a range of technological services from Rostelecom”.
