Video technology provider SeaChange has acquired Warsaw-based set-top and multiscreen device software developer and integrator DCC Labs.
According to SeaChange, the acquisition will take forwards its set-top, multiscreen subscriber device and application strategies.
The deal, which closed on May 6 but was only announced at the end of last week, sees SeaChange pay approximately $8 million in cash and shares for the Polish company.
DCC Labs, which employs over 70 engineers, has deployed projects supporting millions of set-tops, mobile devices and smart TVs, with deployments based on the Reference Design Kit (RDK) as well as Android and Linux operating systems.
SeaChange last year turned to DCC Labs to support a major European cable set-top project, the company said, using the company for the deployment of a user interface and an RDK 2.1-based home video gateway for field trial tests.
SeaChange has also used DCC Labs to help improve quality for another European cable operator’s deployed home video gateway.
DCC Labs CEO Marek Kielczewski, who has led the company since 2009, has been named as senior vice-president of consumer premises equipment Software and will lead SeaChange In Home.
The company was previously owned by 7bulls.com, a private group of software development and integration companies focused on delivering advanced technologies and IT solutions for large enterprises throughout the Americas, Asia and Europe across industries spanning finance, automotive, retail and media.
The transaction is expected to be accretive in fiscal 2017, as well as provide an anticipated one-year payback through synergies and cost savings. SeaChange has begun cutting its workforce within its In Home engineering and services organization, which is anticipated to achieve US$8 million in annualized cost savings.
The transaction includes a lock-up provision for the SeaChange stock that unwinds over a three-year period.
“Through our successful collaboration in the field, SeaChange determined that DCC Labs’ experience and strengths are exceptionally well-aligned with our strategy to operate more efficiently and rapidly roll out high-value, front-end product innovations,” said Ed Terino, CEO, SeaChange. “SeaChange is now better positioned to serve the global RDK licensee community, as well as fulfilling service providers’ growing desire to focus on a select set of vendors to support their video infrastructure from the back-end all the way through to set-tops, mobile devices and the subscriber experience.”