Cloud-based video services vendor Brightcove has announced the $15 million purchase of Ooyala’s video online video platform (OVP) business.
Boston-based Brightcove said during it’s fourth-quarter earnings all Wednesday that the deal consist of $6.25 million in cash and the rest in Brightcove shares.
Brightcove said it’s acquiring Santa Clara, Calif.-based Ooyala’s OVP technology, including video content management and publishing platform Backlot, Analytics, Live, and its underlying intellectual property and associated patents. Brightcove will acquire “substantial portions’ of Ooyala’s engineering, support and sales staff, including the company’s operations in Guadalajara, Mexico.
Related: Telstra Sells Ooyala to Management after $500M Write-Off
Speaking during Wednesday’s earnings call (transcript courtesy of Seeking Alpha), Brightcove CEO Jeff Ray said the deal “makes clear who the undisputed leader is in OVP. And as you know, when you are the market leader, customers and prospects naturally include you in RFPs, they naturally come to you and that gives us we think a great advantage.
“We also have an opportunity to open up to new markets,” Ray added. “They’ve got some geographies, some great well-known customers in geographies where we aren’t very strong or not present at all and we’re excited about the ability to help that accelerate our global expansion. They do have a partner community. It’s robust and we’re very eager to engage with those partners and fold them into our partnership strategy.”
Ooyala was founded in 2007 and subsequently purchased by Australian telecom Telstra. Ooyala management bought the company out in October, following Telstra’s $500 million write-down. Although OVP generated the bulk of Ooyala’s revenue at the time, company CEO Jonathan Huberman said he saw more opportunity in the workflow tools side of the business.
