Synacor Buys Android ShopSays Acquisition Of Teknision Will Expand Synacor’s Multiscreen Expertise 11/05/2013 7:43 PM Eastern
Synacor, a maker of TV Everywhere authentication systems and Web portals for service providers, has cut a deal to acquire Teknision, a developer for the popular Android platform, for an undisclosed sum.
Synacor said the acquisition of Teknision, a 12-year-old, Ottawa-based company that builds custom Android launchers and “homescreens” for mobile and CE companies, represents a step toward Synacor’s vision for delivering “all media from one place, on any device.”
Among Teknision’s wares is an Android framework for developers, and Chameleon, a launcher that enables customers to create customizable home screens for Android-powered widgets and apps.
Synacor’s multiscreen, M&A path has typically cut through Canada. In January 2012, it bought Carbyn, a small firm that specializes in HTML5 software, for $1.1 million. Teknision currently has 11 employees, a Synacor spokesman said.
“Consumers soon will need one-stop access to all media—a homescreen. To that end, we are advancing the presence of our cable, satellite, wireless carrier and consumer electronics customers on a wide range of devices, and all providing their consumers a single point of access,” said Synacor CEO Ron Frankel, in a statement. “With Teknision's platform, Synacor is able to build upon our HTML5 expertise and pursue the exploding mobile device market opportunity.”
Frankel said Android “will become the platform of choice” for CE devices geared to multichannel video programming distributors, including smartphones, tablets, and smart TVs.
On Tuesday’s third quarter earnings call, Frankel predicted that “televisions will have Android in them in the next three to five years.”
Turkcell, a Turkey-based mobile provider with more than 35 million subscribers, uses Teknision’s Android Framework. Other Teknision’s customers include Panasonic, Salesforce.com, Sony, Adobe, Walmart, and Canon, among others.
Synacor’s service provider customers include BendBroadband, Buckeye CableSystem, Google Fiber, CenturyLink, CableOne, Charter Communications, Suddenlink Communications, WideOpenWest, Surewest Communications and Verizon Communications.
Also on Thursday, Synacor posted a third quarter net loss of $800,000 on revenues of $26.6 million. The company posted net income of $700,000 on revenues of $28.3 million in the year-ago period. It ended the quarter with $34.8 million in cash and cash equivalents, versus $38.78 million in the year-ago quarter.
The company is forecasting fourth quarter revenue of $28 million to $29 million and EBITDA in the range of $1.3 million to $1.8 million, figures that factor in the Teknision purchase.
“There will be some small revenue coming from it, but the company (Teknision) has been focused mostly on professional services until now,” said CFO Bill Stuart. The focus going forward, he said, will be for Teknision to design products that would be delivered to CE manufacturers.