Video Storage/Delivery

Imagine Makes RGB's Exit Dreams Come True

Marking its fourth acquisition in the last year, Imagine Communications picked up RGB Networks Monday in a move that Imagine CTO Steve Reynolds said will help his company keep building "the most complete end-to-end video delivery platform" in the business.

Financial details of the transaction were not disclosed. But Imagine Communications announced that it would retain most of the existing RGB Networks Inc. employees.

While Reynolds emphasized that Imagine will continue to support all of RGB's products and customers, he indicated that the company is most interested in RGB's newer CloudXtreme platform. The platform is built on the open source OpenStack cloud operating system. (See RGB Opens Up Transcoding Market.)

CloudXtreme product suites include Cloud/Network DVR and Ad Insertion for Multiscreen. Among other technologies, these solutions leverage RGB's expertise in just-in-time video packaging, which Reynolds described as "industry-leading" in terms of compatibility, scalability and the number of devices it can support.

Reynolds also highlighted how the addition of the RGB portfolio should benefit Imagine customers. As video distribution continues to fragment and users choose to watch shows on their own time, Reynolds said, "We believe the ability to monetize these VoD streams and cloud DVR streams is absolutely critical."

Integration of RGB's technology with Imagine's products is expected to happen quickly, with Reynolds noting that the company should be able to demonstrate integrated solutions in just a couple of weeks. Demonstrations will likely take place at Mobile World Congress in March and the National Association of Broadcasters (NAB) show in April.

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On the business side of the transaction, Imagine will expand its customer base, which currently includes a large number of video programmers, plus a significant number of new network and service operators. RGB counts more than 400 service providers on its customer roster.

RGB, meanwhile, will finally get its long-awaited corporate exit after years of pursuing a potential IPO. In a statement, RGB Chairman and CEO Jef Graham said: "By combining our award-winning innovations with Imagine Communications' vision and resources, our integrated portfolios will greatly advance the transformation of the video delivery landscape. Our customers will benefit from Imagine Communications' high-touch services, extended support, and a broad portfolio of video playout and networking distribution solutions."

— Mari Silbey, special to Light Reading

[email protected] 1/27/2015 | 2:35:21 PM
How Much? I would really like to know how much RGB went for... this was a company that was IPO fodder for so many years but never made it to the market. 
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