SeaChange swoops for Xstream in $5.5MN deal | Major Businesses | Business
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As it continues its corporate fightback, video delivery platform provider SeaChange International has acquired white-label over-the-top video and TV cloud technology firm Xstream.

xstream 11Feb2019Copenhagen-based Xstream was founded in 1999 and made its name through supplying end-to-end video management software and related services based around its core online video platform, MediaMaker, which is designed to enable telcos, broadcasters, cable operators and media companies to manage and deliver TV everywhere, social TV, OTT, multiscreen and second screen TV solutions. Major customers include Canal Digital (Telenor), Star Online (Dimsum), ALT Digital Media Entertainment (Balaji), Mayo Clinic, Altibox, and Our Star Club.

The transaction, which will give SeaChange more than 5 million active subscribers, comprises a payment of $4.6 million in cash and 541,738 shares of SeaChange common stock, for a total transaction value of $5.5 million as of share process on 6 February 2019. It is expected to increase revenues and be accretive to SeaChange in current fiscal year.

SeaChange sees the acquisition of Xstream as accelerating its penetration in the OTT market and new market segments with a SaaS revenue model. It also anticipates the combination of the organisations achieving cost synergies in the region of several million dollars within the first half of fiscal 2020.

“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,” explained SeaChange chief executive officer Ed Terino. “Xstream’s MediaMaker video platform will enhance the SeaChange end-to-end video framework and enable us to gain near-term revenue synergies. Xstream’s engineering resources are in close proximity to our engineering and development organisation in Warsaw, which will enable an accelerated integration and provide for increased velocity of roadmap deliveries.”