SeaChange Buys Dutch VOD Firm

Deal valued at $36.6 million
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ACTON, MASS.: SeaChange International has acquired eventIS B.V., a privately owned Eindhoven, Netherlands company that makes video-on-demand software for European cable and telcoTV operations. The deal is valued at $36.6 million.

Under deal terms, SeaChange agreed to pay 25.5 million euros upfront and will pay 1.2 million euros (US$1.7 million) in cash to the former eventIS shareholders on each of the first three anniversary dates following the acquisition. SeaChange is also obligated on each anniversary date to issue shares of restricted SeaChange stock equating to 800,000 euros (US$1.1 million), annually, to the former eventIS shareholders.

SeaChange announced the acquisition on the same day it released its second-quarter, fiscal 2010 financial results, ending July 31. Total revenues for the quarter were $46.5 million, down $4.2 million than the total revenues of $50.7 million for the same quarter a year ago. Net loss for the quarter was $400,000 (1 cent per share) compared with net income of $1.5 million (5 cents a share) for the same period last year. The second quarter net loss included $500,000 of acquisition costs related to the eventIS buy.

SeaChange said the acquisition will propel it into the European VOD market. Company executives expect the acquisition to push revenues 10 percent higher for the second half of fiscal 2010. -- from TV Technology