Brightcove has agreed to buy Ooyala’s online video platform (OVP) business for roughly US$15 million.
As part of the deal, Brightcove will acquire Ooyala’s video content management and publishing platform Backlot, Analytics, Live, and its underlying IP and associated patents.
It will also take “substantial portions” of Ooyala’s engineering, support, and sales staff, including the company’s Guadalajara, Mexico operations.
Brightcove said it intends to take on all customer, reseller, and partner relationships related to Ooyala’s OVP business globally.
On its fourth quarter earnings call, Brightcove confirmed the purchase price to be approximately US$15 million, with US$6.25 million will be paid in cash and the remainder in Brightcove shares.
“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.”
The news comes after Ooyala’s management completed its buyout of the company in October 2018 after owner Telstra wrote down the value of the video business to zero earlier in the year.
At the time Ooyala CEO, Jonathan Huberman, said that Ooyala was “actively exploring acquisition opportunities to further accelerate Ooyala’s growth” in partnership with private equity investors.
Ooyala’s clients include Audi, Chelsea FC, Dell, National Rugby League of Australia, PGA, Starhub, Sky Sports and Turner.
Brightcove said it expects the deal to close in the first half of 2019 and be accretive on an adjusted EBITDA basis in 2019.