ACTON, Mass.—SeaChange International, a video delivery platform company, has made the move to acquire the European-based company Xstream, which focuses on OTT video and TV cloud platforms. The deal is said to be for $4.6 million in cash and 541,738 shares of SeaChange common stock, which totals $5.5 million, per the official press release.
Based out of Copenhagen, Denmark, and Warsaw, Poland, Xstream reportedly has more than 5 million active subscribers and customers that include Canal Digital, Star Online, ALT Digital Media Entertainment, Mayo Clinic, Alitbox and Our Star Club.
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“Xstream’s MediaMaker video platform will enhance the SeaChange end-to-end video framework and enable us to gain near-term revenue synergies,” said Ed Terino, SeaChange’s CEO, in the press release. “In addition to leveraging Xstream’s experienced engineering resources, we expect to realize cost synergies in sales, marketing and administrative functions, including the consolidation of multiple locations into our Warsaw offices this fiscal year.
“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 host managed service environment,” Terino concluded.
