SeaChange International acquires Denmark company for $5.5M
Photo/Grant Welker
SeaChange's Acton headquarters, which have been put on the market.
Acton video platform provider SeaChance International has acquired a Denmark-based video and TV cloud platform for a total of $5.5 million.
The transaction to acquire Xstream includes $4.6 million in cash and 541,738 shares of SeaChance common stock as of Feb. 6.
In a statement, SeaChange CEO Ed Terino said the acquired firm will provide the company with a managed service and an over-the-top video solution with more than 5 million active subscribers.
That business generates about $6 million in annual revenue, according to Terino.
According to Terino, Xstream’s engineering resources are near SeaChange’s engineering and development organization in Warsaw, Poland.
The acquisition will allow for the synergy of several million dollars in sales, marketing and administrative functions, including the consolidation of offices into SeaChange’s Warsaw location.
SeaChange said in December it will take further reductions expected to bring $6 million in annual savings, in part due to the laying off of 17 workers.
The company has closed seven locations, keeping just three: in Acton; Warsaw, Poland; and Eindhoven, The Netherlands. Two of its units, broadcast servers and storage, and media services, were sold in 2012 for a combined $32 million, eliminating more than 300 jobs. The company's Acton headquarters has been put on the market.
Third-quarter financials showed continuing slides in income. Revenue was $18.6 million, down from $23.4 million in the third quarter last year. The company's net loss was $3.8 million for the quarter.
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