SeaChange Acquires VividLogic

Deal valued at $15 million. 
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SeaChange International, an Acton, Mass.-based provider of VOD technology, announced recently that it has acquired VividLogic, a privately owned company specializing in software and services to cable TV, set top box manufacturers and consumer electronics companies.

SeaChange is paying $12 million in cash at the close of the deal; in addition the company will pay VividLogic shareholders $1 million in cash on each of the first three anniversary dates following the acquisition. VividLogic, based in Fremont, Calif., with 31 employees, had revenues of approximately $7 million in calendar 2009 and is expected to generate a small profit for the year.

SeaChange sees the acquisition as a way to strengthen its presence in the IP video delivery market. VividLogive software and services support tru2way, a digital cable interactive standard primarily available in the U.S.; and the DVB Multimedia Home Platform (MHP) for DVB interactive services, mainly deployed in Europe and Asia.

“VividLogic expands our software product portfolio by providing wireless gateway, tru2way and MHP capability to our in-home offerings,” said Bill Styslinger, SeaChange Chairman and CEO. “Tru2way and MHP are especially important as both North American and European service providers prepare their networks for customer interactive applications. SeaChange has made great progress with its software strategy. Not only have we established ourselves as the leader in backoffice, advertising and application software, additionally our various in-home software products are deployed in approximately 30 million devices.

“As the next generation of in-home devices including wireless gateways and cable-ready televisions emerge, it is important that we embrace these technologies to continue to lead in the in-home software markets,” Styslinger continued. “In 2010 our restriction to sell TV Navigator in North America is lifted and, combined with our strong set-top software presence, we plan to offer tru2way, MHP and wireless gateway software that will enable our customers to share content and offer next-generation applications. We are excited about the market changes and the growth opportunities that lie ahead.