SeaChange sells storage business
March 21, 2012
SeaChange International is selling its broadcast server and storage business so the Company to focus on its core software and services operations including its next generation back office, video streamers, gateway software and advertising solutions.
The sale to a group of financial investors, led by a leading US-based venture firm. The new, independent company will be named XOR Media.
SeaChange CEO Raghu Rau commented, “This divestiture is an important part of our strategy to transform SeaChange into a pure play software company, significantly reduce our overall cost structure, and strengthen our ability to compete in delivering next generation multiscreen video solutions, while generating cash.”
“It’s important to note that this sale is not a parting of ways between SeaChange and the new company XOR Media. We will continue to work together to offer our customers a complete solution. We see this divestiture as a step toward a future relationship – not the ending of one,” Rau added.
VantagePoint Capital Partners’ Terry Chen, whose portfolio companies have participated in this investment, added, “The proliferation of digital media presents a huge upside potential for XOR Media. We are excited about the synergy the new company brings with our other holdings including the Blue Whale File System utilized by XOR Media’s high performance Universal MediaLibrary storage. We see this as a key investment with the tremendous potential of XOR Media’s products, technologies, and people resources, operating independently and in partnership with SeaChange.”