BOSTON—Brightcove, a cloud services provider for video, is entering into a definitive agreement that will see the company acquire cloud video technology Ooyala’s online video platform business.
The acquisition will have Brightcove taking on Ooyala’s OVP technology, which includes the video content management and publishing platform Backlot, as well as other platforms Analytics, Live and Ooyala’s underlying IP and associated patents. Brightcove will also acquire parts of Ooyala’s engineering, support and sales staff, including all of the company’s Guadalajera, Mexico, operations. Per the press release, Brightcove also intends to take on all global customer, reseller and partner relationships that are part of the OVP business.
Brightcove is expected to integrate aspects of Ooyala’s technology into Brightcove’s online video platform to boost its global offerings for customers.
This acquisition comes about four months after Ooyala management bought itself out from Telestra. Telestra had owned Ooyala since 2014, but earlier in 2018 said that the acquisition of Ooyala had resulted in more than $500 million in write-downs, and that as of last February it valued its investment with Ooyala at zero.
The deal is for a reported value of $15 million.
“This transaction, which includes immediately growing our highly skilled and committed global workforce, accelerates our ability to deliver faster innovation and deeper support for all customers,” said Jeff Ray, Brightcove CEO.
The transaction is expected to close in the first half of 2019.
