SeaChange International has acquired DCC Labs, which is a Poland-based set-top and multiscreen device software developer/integrator. The transaction closed on May 6, and SeaChange reports it paid approximately $8 million in cash and SeaChange stock.
DCC Labs is reportedly expected to contribute an additional several million dollars of revenue annually to SeaChange. DCC Labs has more than 70 engineers and has commercially deployed projects supporting millions of set-tops, mobile devices and smart TVs.
In conjunction with the acquisition, SeaChange announced a workforce reduction within its In Home engineering and services organization, which it says is anticipated to achieve $8 million in annualized cost savings. DCC Labs CEO Marek Kielczewsi is now SVP of consumer premises equipment software and will lead SeaChange In Home.
Back in 2015, SeaChange engaged DCC Labs to support a major set-top development project for a large European cable operator, which reportedly resulted in deployment of a user interface and an RDK 2.1-based home video gateway for field trial tests within four months. SeaChange then had DCC Labs assist with improving quality and providing enhancements for another European cable operator’s deployed home video gateway.
In April, SeaChange named Ed Terino as its new CEO. This immediately followed the SeaChange board of directors’ termination of the employment of prior CEO Jay Samit.
“Through our successful collaboration in the field, SeaChange determined that DCC Labs’ experience and strengths are exceptionally well-aligned with our strategy to operate more efficiently and rapidly roll out high-value, front-end product innovations,” Terino says. “SeaChange is now better positioned to serve the global RDK licensee community, as well as fulfilling service providers’ growing desire to focus on a select set of vendors to support their video infrastructure from the back-end all the way through to set-tops, mobile devices and the subscriber experience.”
The acquisition of DCC Labs is said to enable SeaChange to optimize the operations of its In Home business, developer of deployed software solutions including the SeaChange Nucleus home video gateway.