Espial Group, a developer of IPTV middleware and applications, announced Tuesday that it has entered into a definitive agreement to acquire rival IPTV vendor Kasenna, in a deal worth $6.5 million.
According to Espial, the combined company will have more than 100 customers worldwide that have deployed its software for more than 2.4 million IPTV subscribers.
“The combination of Espial and Kasenna strengthens the leadership position of Espial in the IPTV, hybrid IP-DVB and hospitality segments,” Espial CEO Jaison Dolvane said in a statement. “The IPTV market remains early and fragmented, and service providers are looking for clear leaders that they can bet on. Acquiring Kasenna provides us with increased scale, expertise, product breadth and channel access to position ourselves as the leading choice for service providers worldwide.”
Sunnyvale, Calif.-based Kasenna, founded in 2000, develops IPTV and video-on-demand software for telephone companies and cable operators.
Kasenna’s telco customers include Cavalier Telephone, CenturyTel, FastWeb, Kentucky Telephone, SaskTel and Tennessee Telephone. Cable customers include Time Warner Cable, Charter Communications and Knology.
Espial, based in Ottawa, Ontario, Canada, has telco customers that include Belgium’s Belgacom and The Netherlands’ KPN.
The deal, subject to regulatory approvals and other conditions of closing, is expected to close on or about July 9. Upon completion of the acquisition, Espial will have seven directors, six of whom will be the current directors of Espial, and one of whom will be a nominee of the shareholders of Kasenna.
Genuity Capital Markets & GMP Securities LP acted as financial advisors to Espial on the transaction. ThinkPanmure LLC acted as financial advisor to Kasenna.