Multiscreen video software innovator SeaChange International, Inc. has signed a definitive agreement to sell its broadcast server and storage business, allowing the company to focus on its core software and services operations including its next generation back office, video streamers, gateway software and advertising solutions.
The sale to a group of financial investors, led by a leading US-based venture firm, is expected to close after customary regulatory approvals. The new, independent company will be named XOR Media.
SeaChange CEO Raghu Rau commented, “This divestiture is an important part of our strategy to transform SeaChange into a pure play software company, significantly reduce our overall cost structure, and strengthen our ability to compete in delivering next generation multiscreen video solutions, while generating cash.’
“It’s important to note that this sale is not a parting of ways between SeaChange and the new company XOR Media. We will continue to work together to offer our customers a complete solution. SeaChange sees this divestiture as a step toward a future relationship – not the ending of one,’ Rau added.
As a result of the change in business, SeaChange will have the flexibility to offer its customers server and storage products from any company, including XOR Media, as part of its intelligent video platform. SeaChange will continue to provide customer service and support to all of its VOD streaming service provider customers, with renewed focus as a result of this transition, and will also provide customer service and support to any customers who purchase storage products as part of its reseller agreement with XOR Media.