RRsat Says Bezeq is Ours

RRsat Global Communications Network Ltd. [NASDAQ: RRST] has begun arrangements to acquire Bezeq for approximately $15 million in cash. (“Bezeq“) is Israel’s leading telecommunications service provider. This venture is anticipated to close in the third quarter of 2008 and there are, of course, all of the disclaimers; subject to various approvals, including regulatory approvals and other closing conditions. This acquisition includes the property and assets of Bezeq’s Emek Ha’ela Teleport in Israel, which includes; 26.5 acres, BezeqSat, and ‘711’ business units. The BezeqSat unit is their distribution center that provides services to TV and radio channels such as BBC, CNN, and others. The ‘711’ unit provides global satellite communication services, and serves as a primary distribution center for Inmarsat, a global provider of satellite services. As part of the transaction, RRsat will assume Bezeq’s existing satellite business and customer contracts, which earned them approximately $7 million in 2007. This acquisition further grows RRsat’s footprint, and they plan to explore additional acquisitions—Omer, Israel