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RRsat acquire the satellite business of Bezeq

RRsat Global Communications Network Ltd. announced that it has entered into an agreement to acquire the satellite business of Bezeq The Israel Telecommunications Corp. Limited , Israel's leading telecommunications service provider, for approximately $15 million in cash. The acquisition is expected to close in the third quarter of 2008 and is subject to various approvals, including regulatory approvals and other closing conditions.

RRsat has agreed to acquire the property and assets of Bezeq’s Emek Ha'ela Teleport in Israel, which includes approximately 26.5 acres, as well as Bezeq's BezeqSat and ‘711’ business units. The BezeqSat unit is Bezeq's distribution center and provides services to TV and radio channels such as BBC, CNN and many 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 accounted for revenues of approximately $7 million in 2007. RRsat will provide updated 2008 revenue guidance following the closing of the transaction.