SeaChange International has swooped to bag Mobix Interactive and declare its intent of taking its VoD and content aggregation services into mobile as well pay TV. Mobix is a UK mobile content aggregator which supplies O2 and 3 in the UK and Vodacom in South Africa. Mobix has relationships with major content providers such as Warner Music, Turner and MGM.
The deal to buy Mobix involved a paltry up front payment of $4.6 million but makes provision for a huge performance based payout up to $12.5 million more over the next three years, which would make the purchase price $17.1 million, if it is all paid out.
Bill Styslinger, SeaChange International CEO noted, ‘This acquisition strengthens our Media Services segment by broadening our On Demand Group’s (ODG’s) video content service offering to include mobile applications. Mobix not only provides proven solutions to a new set of customers for ODG, but also allows ODG to offer one branded service across multiple platforms for many of its existing customers.’
The deal was announced as veteran VoD specialist SeaChange International issued its third quarter results with revenues of $52 million, 6% up on a year ago. Net income was unchanged at $3.4 million
Revenues for the first nine months of the year to October 31 were $148 million, up almost $16 million or 12% on last year, producing a net income of $5.2 million, compared with a net loss of $9.1 million the year prior.
SeaChange has sold far more software this year, mostly through software upgrades at Comcast, while servers and storage revenues fell.