Video-on-demand tech supplier SeaChange International has sold its ownership stake in Casa Systems for $34.1 million in a stock-for-cash deal, saying the cash would be used to help the company grow its core business.
SeaChange said it expects to realize after-tax proceeds of $30 million, a pretty heft return on the $8.9 million it originally spent to acquire its Casa share. It paid $8.2 million in cash and the cancellation of promissory notes previously from Casa in 2005, adding $654,000 more in June 2009.
SeaChange CEO and Chairman Bill Styslinger, said the company's initial investment in Casa was intended to help accelerate the development of cost-effective, marketable solutions that enable IP streaming over cable, something that's essential for SeaChange to deliver its advanced IP-based television software applications.
"Now that IPTV is a reality, it is the right time for us to sell our shares of Casa so we can allocate all of our resources to help grow our core business," he said. "The sale of SeaChange's stake in Casa represents one of several strategic actions that the Company is taking to improve its liquidity position and deepen its focus on software. SeaChange and Casa will remain close technology and business partners after the transaction and intend to continue collaborating on future projects."
Andover, Mass-based Casa Systems is a privately held company offering network edge devices targeting the interactive digital video and broadband IP services market. The company achieved a range of strategic milestones over the course of SeaChange's involvement, including the first DOCSIS 3.0 gold level certification of Casa CMTS from CableLabs, as well as Cable Modem Termination Systems (CMTS) deployments with Multiple Systems Operators worldwide, notably UPC Broadband.
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