VOD specialist SeaChange International announced that it has signed a definitive agreement to sell its broadcast server and storage business to a group of financial investors, led by a leading US-based venture firm a venture capital group. Terms of the transaction were not disclosed.
The deal enables SeaChange, which has had a recent management shuffle and has embarked on a cost cutting exercise, to become a pure-play software and services company focusing on back office, video streamers, gateway software and advertising solutions.
The assets of the SeacChange broadcast and storage business are now part of a newly formed company called XOR Media, which will be headed by Zheng Gao who was previously the president of the SeaChange storage and servers business.
SeaChange will become a reseller of XOR Media, but will also work with other server and storage vendors. SeaChange says it will continue to provide customer service and support to all of its VOD streaming service provider customers, and will also provide customer service and support to any customers who purchase storage products as part of its reseller agreement with XOR Media.
“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, said SeaChange CEO Raghu Rau. “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. We see this divestiture as a step toward a future relationship – not the ending of one,” Rau added.
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