Net Insight has signed an agreement to divest its Sye consumer streaming business for SEK 350 million (€33.4m) in cash to a Fortune 500 company. The transaction is set to be completed in the coming weeks.
The Sye technology solves fundamental issues for consumer live streaming, a complex ecosystem with large and powerful stakeholders. To influence these stakeholders is critical and the market is less accessible for a small B2B company like Net Insight. In light of this and the offer received, Net Insight said it has decided to divest the Sye business.
“The fact that a Fortune 500 company wants to acquire Net Insight’s internally developed consumer streaming solution is a proof point of our ability to develop world-class video transport solutions,” says Gunilla Fransson, Chairman of the Board of Net Insight. “Sye has accelerated Net Insight’s transformation to an advanced media technology company and has added invaluable competencies that will remain with Net Insight also after the divestment.”
Net Insight said the divestment will allow the company to increase focus and investments in its core B2B media transport business.
The transaction involves divestment of 100 per cent of the shares in a wholly owned Sye business subsidiary. Under the agreement, all relevant IPRs and contracts and around 30 employees and consultants will be transferred to the buyer. The transaction is subject to customary closing conditions.