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SeaChange to divest its broadcast and storage business

22 March 2012
SeaChange to divest its broadcast and storage business

SeaChange International, the global multiscreen video software company, has announced that it has signed a definitive agreement to sell its broadcast server and storage business, allowing the company to focus on its core software and services operations including its next generation back office, video streamers, gateway software and advertising solutions. The sale to a group of financial investors, led by a US-based venture firm, is expected to close after customary regulatory approvals. The new, independent company will be named XOR Media. SeaChange CEO Raghu Rau commented, "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.” “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,” Rau added. As a result of the change in business, SeaChange will have the flexibility to offer its customer’s server and storage products from any company, including XOR Media, as part of its intelligent video platform. SeaChange will continue to provide customer service and support to all of its VOD streaming service provider customers, with renewed focus as a result of this transition, and will also provide customer service and support to any customers who purchase storage products as part of its reseller agreement with XOR Media. VantagePoint Capital Partners’ Terry Chen, whose portfolio companies have participated in this investment, added, “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 utilised 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.” Zheng Gao, president of SeaChange Storage and Servers who will become CEO of the new XOR Media, expressed his outlook of the group’s undertaking, “We are excited about the opportunity to take an industry-leading business unit and make it an even more successful independent company. XOR Media is a new business entity in name, but the same team and processes will be there for our loyal client base – only now, we have the focus and resources to bring to market storage platforms representing the next-generation NAS-SAN convergence. The industry can expect to see more of XOR Media’s open, cloud-capable, and media-optimised servers and storage expand from the existing broadcasting customer base to the entire media and entertainment industry.”

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