SintecMedia Sold in Buyout Backed by Francisco Partners

Jerusalem maker of management software for TV industry valued at $400 million.

SintecMedia's Jerusalem office.
Google StreetView Screenshot

SintecMedia, the Jerusalem-based maker of Internet-based management software systems for television and media companies, has been acquired by its management backed by the U.S. private equity firm Francisco Partners.

In a statement Wednesday, Francisco Partners declined to release financial details, but sources said last week when news of the deal first surfaced that the company was valued at $400 million. The sellers are shareholders led by the U.S. private equity firm Riverwood Capital.

Founded in 2000 and employing over 800 people in 11 offices, SintecMedia counts NBC, ABC and BBC among customers for its flagship OnAir product. Its products manage ad sales, traffic, billing, programming and rights, processing over $33 billion in advertising revenue.

Although that makes it a large tech company by Israeli standards, SintecMedia operated under the radar over the years and has had virtually no media exposure until news of the sale surfaced last week.

“Nothing is changing in SintecMedia’s business operations. We will continue to play a pivotal role in the way advertising is bought, sold and managed in the diverse media industry,” said co-founder and CEO Amotz Yarden, who reportedly held more than a 5% stake in the company before the sale.

Francisco Partners, a technology-focused private equity fund based in San Francisco, has been a serial buyer of Israeli firms, including ClickSoftware for $438 million and homeland security firm NSO for more than $100 million.

Riverwood Capital acquired the company four years ago at a valuation of $110 million from a group of venture capital funds including Walden and Sequoia Israel. Since then, SintecMedia has expanded by acquisitions, buying the U.S. company Storer TV in 2013 and a year later Pilat Media, another Israeli company in a similar business, for $100 million and merged the two, which boosted the value of SinctecMedia considerably.

The same year it acquired Argo Systems of the U.S., which supplies business systems to broadcasters, and in 2015 it bought Broadway Systems, for managing broadcasters’ advertising operations.

According to Israel Venture Capital Research, the company had sales of $50 million in 2013, the last year for which there are figures, up from $35 million in 2012.