Private equity investment firm Genstar Capital has entered into a definitive agreement to purchase live and on-demand digital video tools and workflow solutions provider Telestream for an undisclosed sum. The transaction recognises the Company’s significant growth and positions it well for the next phase of expansion and is expected to close mid-January.
“Genstar’s mid-market focus and deep expertise in the software industry will enable Telestream to further accelerate our growth,” said Dan Castles, Telestream’s co-founder and CEO. “Over the past several years, Telestream has experienced its most significant growth. We look forward to our new partnership with Genstar as we increase our investment in existing products, accelerate our reach into new customer verticals and fuel our next phase of development through additional M&A activity. Our product portfolio and business models are well suited for the Genstar environment.”
“Genstar has been following Telestream closely and this acquisition is consistent with our strategy of investing in vertical market software companies,” said Eli Weiss, a Managing Director of Genstar. Telestream is a leader in its market and has posted profitable growth since its founding. As even more content is generated and viewed on more devices, we believe the company will continue its demonstrated growth trajectory, and we will support Telestream’s experienced and successful management team to expand organic growth via new product releases and pursue add-on acquisitions.”
Telestream’s product line includes media processing platform Vantage, live production and streaming software Wirecast and its new video playback and inspection tool Switch.
Terms of the deal were not disclosed as both companies are privately held. Telestream will continue to operate as an independent entity with existing management teams continuing their current roles. Headquarters will remain in Nevada City, California with offices in Virginia, San Francisco Bay Area and Germany.