A group of financial investors, led by a U.S.-based venture firm, is buying SeaChange’s broadcast server and storage business for an undisclosed amount. The new, independent company will be named XOR Media, headed by Zheng Gao, president of SeaChange Storage and Servers, who was named CEO.?
VantagePoint Capital Partners’ Terry Chen, whose portfolio companies have participated in this investment, explains, “The proliferation of digital media presents a huge upside potential for XOR Media. We are excited about the synergy the new company brings with our other holdings including the Blue Whale File System utilized by XOR Media’s high performance Universal MediaLibrary storage. We see this as a key investment with the tremendous potential of XOR Media’s products, technologies, and people resources, operating independently and in partnership with SeaChange.” ??
SeaChange says it now will focus on its core software and services operations, including its next-gen back office, video streamers, gateway software and advertising solutions. ??Notes SeaChange CEO Raghu Rau, "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.” ??
He continues, “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.” ?
Once the deal closes, SeaChange will be able to offer its customers server and storage products from any company, including XOR Media, as part of its intelligent video platform. The company also says it will continue to provide customer service and support to all of its VoD streaming service provider customers. It also will provide customer service and support to any customers who purchase storage products as part of its reseller agreement with its former division. ?