ACTON, MA – SeaChange is selling off its broadcast server and storage business, a move that it says will allow it to focus on its core software and services operations which include next generation back office, video streamers, gateway software and advertising solutions.
Financial terms of the deal were not disclosed. The sale, announced Wednesday, is to a group of financial investors led by an unnamed US-based venture firm. The new, independent company will be named XOR Media.
"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”, said SeaChange CEO Raghu Rau, in the announcement.
“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,”
Zheng Gao, president of SeaChange Storage and Servers, has been named CEO of XOR Media. The deal is expected to close after customary regulatory approvals.
