Posts Tagged ‘Advent Venture Partners’

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

broadcast technology market research | Posted by Joe Zaller
Aug 02 2012

Online video publishing provider Brightcove announced that it is buying Zencoder, a 2-year old start-up that provides cloud-based encoding, transcoding and an HTML5 video player, for $30m. 

The deal values Zencoder at approximately 15X revenue, a rich valuation for the start-up. Brightcove justified the high price tag by saying that Zencoder’s technology will help it expand its offering, and that the transcoding will grow at a CAGR of 24% between now and 2017.

Zencoder was founded in 2010 when it raised $2m from Andreessen-Horowitz and Ignition Partners.  The company saus it has 1,000+ customers for its cloud-based encoding service, and more than 24,000 websites use its video player.

The Zencoder team will join Brightcove and become the Brightcove Bay Area Development Center.  Brightcove says it will continue to develop, operate, support, and promote the Zencoder products in their current form as distinct product offerings.

“We believe the Zencoder acquisition will advance Brightcove’s position as a leading cloud platform provider that not only provides rich, end-to-end solutions for digital content publishing and distribution, but also offers scalable standalone building blocks for developers to build custom systems,” said Jeremy Allaire, Brightcove chairman and CEO.

 

Video transcoding,  whether cloud- or appliance-based is a hot topic these days, because the technology is required to achieve interoperability between disparate file-based production systems, and to facilitate multi-platform content publishing and distribution. There has been considerable M&A and financing activity in this space including:

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

 

Even after all of the above deals, there are still several stand-alone transcoder vendors in the market, most notably AmberFin (backed by Advent Venture Partners) and privately-held Digital Rapids.

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Related Content:

Press Release: Brightcove Signs Definitive Agreement to Acquire Zencoder

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

Elemental Technologies: SEC Filing Disclosing 2010 Fundraising Round

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© Devoncroft Partners. All Rights Reserved.

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More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

broadcast industry technology trends, Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Apr 24 2012

On the first day of the NAB Show last week, Wohler Technologies announced that it had acquired transcoding vendor RadiantGrid.  Terms of the deal were not made public.

Wohler president & CEO Carl Dempsey said that RadiantGrid’s technology is complementary to Wohler’s and that the deal will help his company break into file-based processing.

The transcoding market is interesting since the technology is used to achieve interoperability between disparate file-based production systems, and to facilitate multi-platform content publishing and distribution.

There has been considerable M&A and financing activity in the transcoding space including:

 

The Wohler – RadiantGrid deal leaves AmberFin (backed by Advent Venture Partners) and Digital Rapids as the remaining stand-alone transcoding vendors. 

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 Related Content:

Press Release: Wohler Acquisition of RadiantGrid™ Paves Way for Expansion Into File-Based Media Processing and Delivery

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

Elemental Technologies: SEC Filing Disclosing 2010 Fundraising Round

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© Devoncroft Partners. All Rights Reserved.

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More Broadcast Vendor M&A: The Carlyle Group Acquires The Foundry from Advent Venture Partners

Broadcast Vendor M&A | Posted by Joe Zaller
Mar 15 2011

The Carlyle Group announced that is has acquired a “significant majority stake” in The Foundry, a UK-based visual effects software specialist, from Advent Venture Partners. As part of the deal, The Foundry’s founders and management will retain a significant minority stake in the business.

Although terms of the transaction were not disclosed, an article in the Financial Times newspaper says that that The Foundry was estimated to be worth “more than £75m ($120m)”.  If this valuation is correct, Advent Venture Partners has made a tidy profit since backing a management buyout at The Foundry less than two years ago.  This is the third broadcast industry deal for Advent in the past couple of years.  The UK-based venture fund sold its majority in Snell & Wilcox to Lloyd’s Development Capital in 2009, and retained a minority interest in Snell.  In 2010 Advent invested in ingest and transcoding vendor AmberFin.

The Foundry has experienced strong growth since the Advent-funded management buyout in June 2009, driven by demand for its visual effects software.  Since that time, the company’s headcount has tripled to more than 100 staff, and its revenue has more than doubled to £14.9m ($23.8m).  Today, The Foundry has more than 4,000 customers including The Moving Picture Company (MPC), Prime Focus, Dreamworks, Industrial Light and Magic (ILM), Framestore, Cinesite, Double Negative and several other high-end facilities.

Carlyle, which funded the acquisition through its “Carlyle Europe Technology Partners (CETP) II” fund, has acquired and invested in 20 companies, supporting their growth, expansion and business transformation initiatives in the technology space.  Carlyle says it plans to will support The Foundry’s expansion and continue to invest in its specialized product offerings while diversifying into adjacent market areas.

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Related Content:

Press release: The Carlyle Group to Acquire Visual Effects Software Developer The Foundry from Advent Venture Partners

Advent Ventures exits Snell & Wilcox in a merger worth £72million and retains stake in newly-created global force in broadcasting technology

AmberFin Closes Funding Round — Fourth Transcoding-Related Transaction in Past Few Months

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AmberFin Closes Funding Round — Fourth Transcoding-Related Transaction in Past Few Months

broadcast technology market research, Broadcast technology vendor financials | Posted by Joe Zaller
Sep 10 2010

Ingest and transcoding vendor AmberFin announced today the company has secured additional investment from UK-based venture capitalist Advent Venture Partners. The amount of the funding round was not disclosed.

AmberFin, which was spun out of Snell & Wilcox in April 2008, says it will use the new money to capitalize on the expanding demand for file based workflows.

According to the company, AmberFin has recently closed a number of strategic business wins, and been active in three key industry initiatives to grow the file based workflow market, the VCO Forum, the JPEG2000 alliance and the joint EBU/AMWA FIMS project.

Company CEO Jeremy Deaner said that an increasing number of broadcast industry players are investing in file-based workflows, and that “AmberFin is well placed to service this growth business as our expertise and technology encompasses both existing Broadcast video workflows and new IT centric working practices.”

There has been quite a bit of activity in the transcoding space recently, and the announcement by AmberFin is the fourth transcoding-related transaction in recent months.  In addition to the AmberFin funding deal:

  • Ripcode was purchased by RGB networks
  • Elemental Technologies closed a funding round led by Steamboat Ventures
  • Telestream purchased the operating business of rival transcoding vendor Anystream
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