Vecima Networks (TSX:VCM) has entered into a definitive agreement with Concurrent (NASDAQ:CCUR) to acquire all of the assets of its video content delivery and storage business for $29 million in cash.
The acquisition is intended to support and accelerate Vecima's ability to respond to opportunities in IP-driven video technologies and multiscreen services, and also to extend Vecima's reach in the global market, including the Americas, Europe and Asia.
"As global IP traffic surges and broadband speeds accelerate, the rise in video-based services like on-demand IP video and streaming is increasing exponentially," said Sumit Kumar, president and CEO of Vecima. "Concurrent's video delivery system dovetails perfectly with Vecima's suite of leading-edge cable platforms to provide the cable industry with a compelling IP video and broadband access ecosystem. Adding Concurrent's broad portfolio of products to Vecima's industry-leading broadband access platforms results in a powerful combination that allows for delivery of an end-to-end, massively scalable video and data solution, both to existing and new customers."
Concurrent's Delivery and Storage Business employs approximately 100 people and generated revenues of $27.6 million for the fiscal year ended June 30, 2017. Vecima plans to continue operating the business under the Concurrent brand. While it will retain an independent operating model, Vecima expects to leverage the complementary nature of the two companies' product lines.
"We are very excited to enter into this agreement and believe that Concurrent will be an excellent addition to the Vecima brand," said Derek Elder, president and CEO of Concurrent.
The proposed transaction is subject to various terms and conditions, including approval by Concurrent shareholders, and is anticipated to close by the end of 2017.