Content delivery network acquisition is becoming an increasingly common sight in the CDN industry. As new and exciting content delivery network providers enter the market and grow, existing content delivery networks (or large companies looking to enter the market themselves) have been snapping them up in order to broaden their global footprint or simply gobble up the competition.
Now, the latest content delivery network acquisition comes courtesy of Vecima, who has acquired the CDN provider Concurrent. Vecima is based out of Victoria, British Columbia, in Canada, and are a leading designer and manufacturer of network technology solutions. They have acquired Concurrent for US$29 million
Content Delivery Network Acquisition Benefits
“Vecima believes that the rapid growth in IPTV delivery across both MVPD private CDNs and OTT providers will continue to accelerate. Concurrent is a recognised leader in storing, protecting, transforming and delivering media assets. Adding their solutions to our industry-leading broadband Internet access platforms, will allow us to deliver an end to end, massively scalable video and data solution to the market,” said Sumit Kumar, President & CEO of Vecima Networks. “We are also thrilled to have Concurrent’s strong and highly skilled team join the Vecima family, enhancing our position as a leading vendor to our collective base of Tier 1 service provider customers,” added Kumar.
“At closing, we anticipate that Concurrent will have a debt free balance sheet with approximately $67 million in pro forma working capital and substantial retained tax assets,” said Derek Elder, President & CEO of Concurrent. “The Board of Directors has established an investment committee to evaluate options to maximise the value of the Company’s remaining assets, which, following the closing of the Vecima transaction, will consist primarily of cash and cash equivalents and the Company’s remaining net operating loss carryforwards under federal, state, and foreign tax laws.”