SeaChange, a cable VoD pioneer that branched into streaming, will sell its assets to PartnerOne, a company that specializes in all-cash deals. SeaChange's historical customers include Liberty Global, Altice, Cox and Rogers.

Jeff Baumgartner, Senior Editor

March 11, 2024

3 Min Read
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SeaChange International's future took another turn Monday with word that PartnerOne, a self-described software conglomerate, has struck a deal to acquire the assets of the video tech specialist.

Under the deal, an "affiliate" of PartnerOne will acquire substantially all of SeaChange's assets. PartnerOne will also assume certain liabilities, for a purchase price of $30 million, minus SeaChange's cash and cash equivalents at the time of closing.

SeaChange, which expects the deal to close during the first quarter of its 2025 fiscal year, said the deal is anticipated to result in net proceeds to the company of $13 million to $15 million.

The proposed deal contains a $1 million termination fee payable to PartnerOne.

It's not fully clear what will happen next to the assets of SeaChange as it eventually comes under PartnerOne. Light Reading has asked SeaChange what the fate of its current employees will be, including CEO Chris Klimmer.

As of January 31, 2023, SeaChange reported having 108 employees worldwide, but has not announced an updated headcount since then.

PartnerOne did not spell out how its affiliate company will support SeaChange's assets and who will be in charge of them going forward.

VoD tech pioneer

SeaChange, one of the pioneers of cable video-on-demand (VoD), competed with companies such as nCube (acquired by C-COR in 2004) and Concurrent Computer Corporation (its content and delivery and storage business was sold to Vecima Systems in 2017).

SeaChange's customers include Vidaa (Hisense's smart TV platform), Liberty Global, Altice, Cox Communications, Rogers Communications, Frontier Communications, DirecTV and Dish Network, among others.

SeaChange's product line includes video software platforms for operators; various advanced advertising technologies; StreamVid, a cloud-based over-the-top video platform; and Xstream, a cloud-based platform for operators and content owners to deliver ads on connected TV platforms, with a focus on free, ad-supported streaming television (FAST) channels.  

Last November, SeaChange posted fiscal Q3 revenues of $6.6 million and a GAAP net loss of $100,000. It ended the quarter with $16 million in cash, cash equivalents and marketable securities.

"Our decision to monetize our product lines and sell our assets to a much larger and more experienced software company, like PartnerOne, is very positive news for our customers and is expected to generate new opportunities for our customers and teams," Klimmer said in a statement. "With PartnerOne's acquisition of these assets, SeaChange will be able to enhance its offerings to customers and continue to win market share in the dynamic PayTV, Video advertising and streaming markets."

SeaChange's agreement with PartnerOne comes together more than a year after SeaChange announced it was exploring strategic alternatives, including a sale or a merger. SeaChange announced last August it would delist its stock from the Nasdaq.

The company currently trades on the OTC market. Shares in SeaChange jumped $3.05 (+174.29%) to $4.80 each on Monday.

Another shot at M&A

The PartnerOne deal is SeaChange's latest shot at an acquisition. In 2021, it struck a deal with Triller Hold Co., a developer of short-form video apps and content for media platforms. However, that deal was scuttled the following year after the companies opted not to seek an extension to a set termination date.

Acquisitions of companies with infrastructure software is a key growth focus for PartnerOne, which typically seeks M&A opportunities for companies with $5 million to $200 million in annual recurring revenues.

Riverside, California-based PartnerOne, which says it's an "all-cash buyer," has acquired several companies in recent years, including Evolving Systems (real-time "digital engagement solutions" for global telecom operators and mobile service providers), FSMLabs (clock synchronization software), Luminex (mainframe connectivity), and Assima (productivity software for training and support for enterprise software applications).

About the Author(s)

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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