Looking to expand its presence with some tier 1 providers and bulk up its video technology portfolio, Vecima Networks announced Monday that it has inked a deal to acquire Concurrent Computer Corp.’s content delivery and storage business for $29 million in cash.
Concurrent, a VOD server and software pioneer based in Atlanta, counts Charter Communications and Altice USA among its tier 1 MSO customers. Earlier this year, Concurrent took aim at tier 2/3 operators with a new platform aimed at helping that group upgrade and advance their existing video platforms cost effectively, covering services such as VOD, live TV and cloud DVR.
Concurrent’s delivery and storage business employs about 100 people and generated revenue of $27.6 million for the fiscal year ended June 30, 2017. Vecima said it expects to continue operating the business under the Concurrent brand.
Concurrent and Vecima expect to close the deal before the end of 2017.
In May, Concurrent sold its Real-Time business segment to Battery Ventures for $35 million in cash.
Concurrent is expected to have a debt-free balance sheet with about $67 million in pro forma working capital and “substantial retained tax assets” at the time of the deal’s closing with Vecima, Derek Elder, Concurrent’s president and CEO, said in a statement.
Vecima said it expects that its business will generate more than $5.5 million in annualized adjusted EBITDA after closing, capturing synergies that include the removal of Concurrent’s public company costs.
Concurrent is expected to file a preliminary proxy statement with the U.S. Securities and Exchange Commission within 30 days. It said that a group of stockholders representing about 17% of the issued and outstanding shares of Concurrent common stock have agreed to vote in favor of the proposed deal.
Canada-based Vecima has specialized in products such as video decoders, gear targeted to the commercial and hospitality industry, as well as DOCSIS 3.1, including nodes tailored for cable’s emerging distributed access architectures.
“Vecima believes that the rapid growth in IPTV delivery across both MVPD private CDNs and OTT providers will continue to accelerate,” Sumit Kumar, Vecima’s president and CEO, said in a statement. “Concurrent is a recognized leader in storing, protecting, transforming and delivering media assets. Adding their solutions to our industry leading broadband internet access platforms, will allow us to deliver an end to end, massively scalable video and data solution to the market.”