Video delivery technology company SeaChange International has announced the purchase of Danish streaming solutions vendor Xstream A/S for $5.5 million.
The deal combines $4.6 million in cash and 541,738 shares of SeaChange stock. Acton, Mass.-based SeaChange will be taking over Xstream’s signature product, MediaMaker, an end-to-end OTT platform.
“Xstream provides us a managed service, over-the-top video solution that already serves more than 5 million active subscribers globally and generates approximately $6 million in annual SaaS revenues,” said SeaChange CEO Ed Terino, in a statement.
Xstream has offices in Copenhagen, Denmark and Warsaw, Poland.
“Xstream’s engineering resources are in close proximity to our engineering and development organization in Warsaw, which will enable an accelerated integration and provide for increased velocity of roadmap deliveries,” Terino added. “We anticipate achieving several million dollars of cost synergies from the combination of our organizations within the first half of fiscal 2020. 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.”
SeaChange continues to look for its footing, as its client base shifts to over-the-top delivery methods for video.
In December, SeaChange reported a 21% revenue decline in the third quarter of 2018 to $18.6 million.