SeaChange International has sold its UK-based media services company On Demand Group to Avail-TVN for $27 million (€21.11m).
The global provider of digital video services has just received $100 million in a funding round led by The Carlyle Group, which becomes the company’s largest investor. The intention is to expand further internationally.
SeaChange CEO Raghu Rau commented, “This sale is part of the ongoing execution of our strategy to transform SeaChange into a pure-play software company, while generating significant cash for our business and improving shareholder value. As the sale is to a strategic buyer, the combination of Avail-TVN and On Demand Group creates a global media services powerhouse, which also presents a significant customer opportunity for SeaChange.
Rau said that SeaChange would now focus on the delivery of next generation multi-screen video software solutions to cable, IPTV and mobile operators worldwide.
The acquisition of ODG expands Avail-TVN’s reach to more than 25 countries, serving more than 70 million households globally. Major markets include North America, the Caribbean, Latin America, Europe, Middle East and Asia.
“Our strategy has been to invest in leading players across the digital media ecosystem and incorporate them into one company to build Avail-TVN into the largest provider of advanced digital video services worldwide,” said Ramu Potarazu, Avail-TVN’s chief executive officer.”
Geographically, ODG gives Avail-TVN access to 20 counties away from its core territories of North America and Latin America.
Tony Kelly, CEO at On Demand Group, will now report to Avail-TVN CEO, Ramu Potarazu, and serve as a member of the executive management team.
ODG was formed in 1995 by Kelly and the late Andy Birchall. It was sold to SeaChange ten years later. Among its customers are Virgin Media, Kabel BW, HBO, du, 3, SFR and Disney.
