Ooyala’s online video platform business sold to Brightcove for $15m
Brightcove has bought Ooyala’s online video platform (OVP) business in a $15m (£11.7m) deal that includes its technology and IP and much of its staff.
The video content management and publishing platform Backlot, Analytics, Live, and the underlying IP and associated patents are all bundled in the agreement.
Brightcove will also acquire “substantial portions” of Ooyala’s engineering, support, and sales staff, including the company’s Guadalajara, Mexico operations.
In a statement, the company said that it intends to take on all customer, reseller, and partner relationships utilized by Ooyala’s OVP business globally.
Discussing the deal, Jeff Ray, the chief executive of Brightcove, said: “Ooyala has tremendous global customers who understand the power of video and its ability to transform business and reach new customers.
“This transaction, which includes immediately growing our highly skilled and committed global workforce, accelerates our ability to deliver faster innovation and deeper support for all customers. We also will increase our market reach and further strengthen our ability to secure new business in key target markets.”
Brightcove develops an online video platform for media, entertainment, marketing, and enterprise. Following the acquisition, aspects of Ooyala’s technology will be integrated into the Brightcove platform to provide what the company described as a “more robust global offering for all customers.”
Jonathan Huberman, the chief executive of Ooyala added: “Brightcove is doing amazing things in the OVP market, and we are pleased our customers will work directly with the market leader.”
The transaction is expected to close in the first half of 2019 with Brightcove paying $9m in stock and $6.25m in cash.
BMO Capital Markets acted as financial advisor to Brightcove on this transaction.