SeaChange has acquired OTT video and TV cloud platform provider Xstream in a deal valued at about $5.5 million.
Privately-held Xstream is based in Copenhagen, Denmark, and Warsaw, Poland and its managed service OTT video offering serves more than 5 million active subscribers globally, generating about $6 million in SaaS revenues annually.
Counted among Xstream’s major customers are Canal Digital (Telenor), Star Online (Dimsum), ALT Digital Media Entertainment (Balaji), Mayo Clinic, Altibox, and Our Star Club.
SeaChange expects to realize near-term revenue increases, with Xstream’s MediaMaker platform enhancing the company’s end-to-end video framework, as well as “several million dollars” of cost synergies related to sales, marketing and administrative functions within the first half of 2020, SeaChange CEO Ed Terino said in release announcing the acquisition. This includes consolidating multiple locations into SeaChange’s Warsaw offices this fiscal year.
“Xstream’s engineering resources are in close proximity our engineering and development organization in Warsaw, which will enable an accelerated integration and provide for increased velocity of roadmap delivers,” Terino said. “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 management service environment.”
SeaChange paid $4.6 million cash and 541,738 shares of common stock in the transaction.