SintecMedia, a Jerusalem company that makes Internet-based management software systems for broadcasters, is expected to be acquired shortly by the U.S. private equity firm Francisco Partners for about $400 million.
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Founded in 2000, SintecMedia is a big company by Israeli standards, employing 800 people in 11 offices worldwide and counts NBC, ABC and BBC among its clients for its flagship OnAir product.
But the company has largely operated under the radar and few people even in the Israeli high-tech scene know the company. SinctecMedia declined to comment on the reports.
The seller is Riverwood Capital, a U.S. private equity fund that acquired SintecMedia four years ago at a valuation of $110 million from a group of venture capital funds including Walden and Sequoia Israel.
Since its acquisition by Riverside, 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. The merger with Pilat, in particular, boosted the value of SinctecMedia considerably.
The same year SintecMedia 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 Center, the company had sales of $50 million in 2013, the last year for which there are figures, up from $35 million in 2012. CEO Amotz Yarden also holds more than a 5% stake in the company.
San Francisco-based Francisco Partners, which focuses on technology, has bought a number of Israeli tech firms, including ClickSoftware for $438 million and homeland security firm NSO for more than $100 million.