ACTON, MASS—SeaChange International, a developer of global multiscreen video software, is acquiring Timeline Labs, a privately-owned, California-based SaaS company for $24.5 million. Timeline develops software to help local broadcasters, local and national news organizations, cable news channels and other media companies and brands analyze social media messages in real-time, find and broadcast newsworthy social trends and insights, and measure viewing audience engagement across television, mobile and PC. Timeline's customers include Fox Television Stations, Sinclair, Media General and Tribune broadcast television stations, as well as online providers like 120Sports.com.
The announcement comes a week after Timeline announced the creation of Newcoin, a new local TV audience measurement venture that will accurately measure audiences across the entire spectrum of linear and digital platforms. The new service is a joint venture between Timeline and Fox Television Stations, Tribune Media and Univision.
Under the terms of the definitive agreement, SeaChange will pay $14 million in cash, $8 million in shares of SeaChange stock, and up to an additional $2.5 million in deferred performance-based consideration payable in shares of SeaChange stock. The payment will be based on financial targets for Timeline Labs over a two-year period with payment upon achievement of these metrics occurring annually. The transaction is subject to customary closing conditions and is expected to close on Feb. 2, 2015. All Timeline Labs employees, including the CEO and senior leadership team, will join SeaChange as part of the transaction. In addition, SeaChange has agreed to name one person designated by Timeline Labs' equityholders to the SeaChange board of directors, effective as of closing of the transaction.
Timeline Labs provides a rapidly deployed content management platform that enables its customers to discover, curate and display geographically targeted news stories that are trending across social media sites (Facebook, Instagram, Twitter, etc.) with visualizations that are ready for air on television and over-the-top. Timeline's major investors include former executives of television networks ABC, CBS, Fox and NBC, Sinclair Broadcast Group, and Guggenheim Digital Media.
SeaChange CEO Jay Samit said that the Timeline acquisition will allow the company “to extend the social news paradigm to multiscreen television service providers, so they can easily launch ready-made and differentiated live or on-demand content packages tailored to the interests of their subscribers."
SeaChange currently has 723 employees, with the majority in the U.S., the Philippines and the Netherlands. Timeline has 30 employees at its offices in Santa Monica and San Francisco.