SeaChange Buys ITV Software Developer Flashlight

Companies Say All Major U.S. Cable Operators Use Flashlight's Software

SeaChange International has purchased Flashlight Engineering and Consulting, a privately held 20-employee interactive TV developer in Portland, Ore., for an undisclosed sum.

Financial terms of the deal were not disclosed. The transaction covers all assets and intellectual property, including source code, from Flashlight.

SeaChange has been transforming itself into a pure-play software company. Earlier this year the vendor spun off its broadcast server and storage business as XOR Media to a private investment group, and last monthSeaChange sold its U.K.-based On Demand Group to media-services firm Avail-TVN for $27 million.

Flashlight has developed a variety of ITV software, including drivers, applications, Web services and code for set-top boxes and mobile devices.

Every major cable operator in the U.S. uses software developed by Flashlight, according to Shiva Patibanda, general manager of SeaChange's In-Home business unit, who will oversee the division. "their expertise ties in nicely with our software development and deployments with all major cable operators in the Americas and Europe," Patibanda said.

Under the deal for Flashlight, SeaChange will create a business unit in Portland for its 20 employees. Effective immediately, Flashlight president and CEO Eric Miller becomes vice president of engineering at SeaChange, reporting to Patibanda.

"We welcome the highly talented Flashlight organization to our SeaChange team," SeaChange CFO Mike Bornak said in announcing the deal. "This purchase of Flashlight assets is an example of the research and development investments we are making to accelerate the delivery of our next generation software solutions and develop new revenue streams."

SeaChange and Flashlight have previously collaborated on projects for large cable operators, according to Miller. "Besides the existing synergy between the two companies, this merging creates an expansion of engineering scope for SeaChange," he commented.