SeaChange announced that it has completed the sale of its broadcast server and storage business. The company said the transaction, which is essentially a carve-out sale of the company’s hardware business to newly formed XOR Media, was led by an unnamed leading US-based venture capital firm. Terms of the transaction were not disclosed.
The deal is the culmination of a series of actions aimed at helping SeaChange transition its business to a pure-play software company. Earlier this year the company announced a $5m cost cutting program earlier this year, parted ways with its president, made acting CEO Raghu Rau’s position permanent, and spun off its broadcast hardware business to newly formed XOR Media.
“Now that the transaction is complete, we can focus on our core software and services operations,” said Rau. The company’s software offering includes back office, video streamers, gateway software and advertising solutions.
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.
XOR Media CEO Zheng Gao stressed that the new company was focused on maintaining its customer base. “XOR Media is a new business entity in name, but the same team and processes are here to ensure business continuity for our customers,” he said.
Press release: SeaChange Completes Sale of Its Broadcast and Storage Business
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