SeaChange of Acton to acquire Calif. firm
Video software manufacturer SeaChange International of Acton will acquire a California-based company that helps broadcast news organizations manage and analyze social media content, SeaChange announced.
The deal to acquire Timeline Labs, of Santa Monica, Calif., is estimated at between $22 million and $25 million. SeaChange said it will pay $14 million in cash, $8 million in stock and up to $2.5 million in deferred performance-based consideration that would be paid in SeaChange stock. The latter part of the payment will be based on financial targets for Timeline Labs over each of the next two years, SeaChange said.
SeaChange expects the deal to close Feb. 2.
Customers of Timeline, which helps media organizations measure audience engagement through television sets and technology devices, include FOX Television Stations, Sinclair, Media General and Tribune broadcast television stations, as well as online providers like 120Sports.com, according to a statement from SeaChange.
"Timeline Labs' success demonstrates that social media can be captured for the advantage of the television industry, bringing concrete, new value by truly reflecting and serving the current mindset of their specific audiences,” SeaChange CEO Jay Samit said in the company’s statement. The acquisition, he added, “will allow us to extend the social news paradigm to multiscreen television service providers, so they can easily launch ready-made and differentiated live or on-demand content packages tailored to the interests of their subscribers."
“Our teaming with SeaChange is an exciting stage for Timeline Labs,” CasSelle added, “We anticipate cross-selling opportunities that will help us to extend our platform to new customers.”
SeaChange said all Timeline Labs employees, including its CEO, Malcolm CasSelle, and his senior leadership team, will join SeaChange as part of the transaction. In addition, SeaChange has agreed to name one person designated by Timeline Labs' equity holders to the SeaChange board once the transaction closes.
For its most recent fiscal year, which ended Jan. 31, SeaChange reported $146.3 million in revenue, down from $157.2 million in fiscal 2013. It lost $3 million, but that was far less than the $19.2 million it lost in fiscal 2013.
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