Israel’s RRsat Global Communications Network has completed the acquisition of the satellite business of Bezeq, The Israel Telecommunications, for approximately $15 million in cash.
The closing of the acquisition previously announced in March 2008 follows receipt of necessary regulatory approvals and completion of other customary closing conditions.
According to RRsat, it acquired all the property and assets of Bezeq’s Israeli Emek Ha’ela Teleport, which includes approximately 26.5 acres of land, as well as the business units of BezeqSat and ‘711’.
David Rivel, founder and CEO of RRsat, said: The broad infrastructure capabilities of the Emek Ha’ela teleport, paired with the company’s unique content management, distribution and playout services, will be instrumental for our long term growth strategy. Furthermore, this acquisition will enable us to further expand our addressable markets to cover new regions and services.
Earlier in October 2008, RRsat announced its financial results for the three-month period ended September 30, 2008. According to the report, revenues for the third quarter of 2008 totaled a record $20.1 million, an increase of 34% compared to $15.0 million in the third quarter of 2007. Backlog of signed agreements, as of September 30, 2008, reached a record $178.5 million, a further increase of $4.5 million from the $174.0 million backlog of signed agreements as of June 30, 2008.
The report said that operating income for the third quarter of 2008 totaled $4.0 million, a 38% increase compared to $3.0 million in the third quarter of 2007.