Provider of Cloud services for video, Brightcove, has signed a definitive agreement to acquire all assets of Cloud video advertisement insertion company, Unicorn Media, in a transaction totalling approximately $US49 million.
The purchase price consists of about 2.9 million shares of Brightcove stock based on a $US14 price per share, and around $US9m of cash used to pay transaction and other expenses of Unicorn Media.
Brightcove chief executive officer (CEO), David Mendels, claims the acquisition will deliver a suite of Cloud services for offering and monetising online video content, and in turn eliminating challenges associated with effective delivery of ad-supported video content to a fragmented landscape of platforms.
As part of the agreement, Brightcove will rebrand the Unicorn Media product line as Brightcove Once, and will continue to develop, operate and support the services while integrating the technology with other Brightcove services.
Unicorn Media's Once is a Cloud-based ad insertion and video stitching service which addresses the limitations of traditional online video ad technology. The services promises to reduce or eliminate the need for platform-specific ad technology, enabling digital media companies to deliver live or on-demand video with customised programming and targeted advertising.
Unicorn Media's headquarters in Tempe, Arizona, will become the Brightcove southwest research and development centre.
Brightcove expects fourth quarter 2013 revenue to be $US29.7m to $US30m. It expects fourth quarter 2013 non-GAAP income from operations to be between $US1m and $US1.3m.
Full year revenue is expected to be $US126m to $US130m, including $US8m to $US9m of contribution from Unicorn Media. Non-GAAP loss from operations is expected to be between $US9m and $US12m, including a loss attributable to Unicorn Media of $US11m to $US12m.
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