Adds More Than 5 Million Active Subscribers. Transaction Expected to Increase Revenues and Be Accretive to Seachange in Current Fiscal Year
Video delivery platform leader SeaChange International announced that it has acquired privately-held Xstream A/S, a leading over-the-top video and TV cloud platform provider based in Copenhagen, Denmark and Warsaw, Poland. SeaChange paid $4.6 million in cash and 541,738 shares of SeaChange common stock, for a total transaction value as of February 6, 2019 of $5.5 million.
Ed Terino, Chief Executive Officer stated, “Xstream provides us a managed service, over-the-top video solution that already serves more than 5 million active subscribers globally and generates approximately $6 million in annual SaaS revenues. Xstream’s MediaMaker video platform will enhance the SeaChange end-to-end video framework and enable us to gain near-term revenue synergies.”
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He added, “Xstream’s engineering resources are in close proximity to our engineering and development organization in Warsaw, which will enable an accelerated integration and provide for increased velocity of roadmap deliveries. We anticipate achieving several million dollars of cost synergies from the combination of our organizations within the first half of fiscal 2020. In addition to leveraging Xstream’s experienced engineering resources, we expect to realize cost synergies in sales, marketing and administrative functions, including the consolidation of multiple locations into our Warsaw offices this fiscal year.”
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Terino concluded, “The acquisition of Xstream will accelerate SeaChange’s penetration in OTT and new market segments with a SaaS revenue model and fully cloud-based end-to-end video platform that operates in a hosted managed service environment.”
Major Xstream customers include Canal Digital (Telenor), Star Online (Dimsum), ALT Digital Media Entertainment (Balaji), Mayo Clinic, Altibox, and Our Star Club.