Brightcove to Buy Ooyala’s Online Video Platform Business
Brightcove Inc. (NASDAQ: BCOV), a leading global provider of cloud services for video, has announced it has entered into a definitive agreement to acquire the online video platform (OVP) business of Ooyala, a provider of cloud video technology.
Brightcove is acquiring Ooyala’s OVP technology, including video content management and publishing platform Backlot, Analytics, Live, and its underlying IP and associated patents. As part of the transaction, Brightcove will acquire substantial portions of Ooyala’s engineering, support, and sales staff, including the company’s operations in Guadalajara, Mexico. Brightcove intends to take on all customer, reseller, and partner relationships utilised by Ooyala’s OVP business globally.
“Ooyala has tremendous global customers who understand the power of video and its ability to transform business and reach new customers,” said Jeff Ray, CEO of Brightcove. “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. We look forward to welcoming Ooyala’s OVP customers and ensuring a smooth transition and a world-class experience for them.”
Over the past 15 years, Brightcove has developed the most sophisticated online video platform in the market with solutions supporting media, entertainment, marketing, and enterprise spaces. Aspects of Ooyala’s technology will be integrated into the Brightcove platform to provide a more robust global offering for all customers.
“As Brightcove disclosed in its February 13 earnings announcement,” said Jonathan Huberman, CEO of Ooyala, “we have agreed to sell our online video platform (OVP) business to Brightcove. We know our OVP clients will continue to be provided outstanding service by the excellent Brightcove OVP team. With this transaction we’re ushering in an exciting new chapter for our company, as we continue to focus and expand on Ooyala’s flourishing workflow and media-asset-management solutions, centered around our highly successful Ooyala Flex Media Platform, which continues to grow rapidly and is serving an expanding roster of film and TV studios, networks and broadcasters globally.
“We hold our customers’ success as paramount. Selecting Brightcove further demonstrates this commitment and ensures they will receive a world-class experience. Brightcove is doing amazing things in the OVP market, and we are pleased our customers will work directly with the market leader.”
The transaction, expected to close in the first half of 2019, follows October’s 2018 management buyout of Ooyala from chief investor, Telstra, after the Australian telco had written off the value of its investment, and December 2018’s sale of its Ad Tech division to US-based addressable TV advertising systems company, INVIDI Technologies Corporation, for an undisclosed sum.
In May 2017, Ooyala filed a lawsuit against Brightcove Inc. In the lawsuit, Ooyala alleged that Brightcove had engaged in deliberate and willful misappropriation of proprietary trade secrets including customer contact lists, confidential sales pitches and pricing, marketing plans and corporate strategies to undermine and exploit Ooyala’s business dealings and sales efforts for Brightcove’s benefit throughout Latin America. The case, however, was voluntarily terminated on October 25, 2018.
BMO Capital Markets acted as exclusive financial advisor to Brightcove on the acquisition.
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