Network video processing company RGB Networks has acquired privately held mobile video transcoding specialist RipCode in an all-stock deal that helps RGB position itself as a leader--and an intriguing target itself--as cable companies increase their push to roll out true TV Everywhere solutions that include a mobile component.
RipCode's video processing and distribution platform has seen wide-scale deployment across platforms. It was used in MySpace's global mobile streaming video initiative. Its digital signal processing technology enables accelerated video conversion for multiple formats. The Dallas-based company announced the closing of $12.5 million in Series C funding 18 month ago, and had backing from leading venture capital firms including Granite Ventures, Hunt Ventures, Vesbridge Partners, El Dorado Ventures and ATA Ventures.
The deal, which Frost & Sullivan analyst Dan Rayburn reports will create a company with sales of about $60 million for 2010, will fold 25 of RipCode's 26 employees into RGB's fold, with RipCode CEO Brendon Mills becoming GM and VP of the mobile video division.
RGB will incorporate RipCode's technology into its Video Multiprocessing Gateway giving video service providers a cost-effective delivery service to their subscribers on TVs, PCs and mobile devices.
"As video service providers consolidate their headends and build converged delivery networks, they require highly reliable IP video solutions that scale efficiently across all subscriber devices," said Jef Graham, CEO of RGB Networks. "With the integration of RipCode's mobile delivery technology... RGB can offer a unified content delivery solution for TV, PCs and mobile in a scalable, carrier-class platform."
Graham said the acquisition gives RGB--which counts among its customers cable companies Comcast, Time Warner Cable, Cox, Charter, Cablevision, Rogers, Shaw and Telus--the ability to offer a "unique solution that directly satisfies our customers' requirements for three screen delivery."
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RGB Networks Demonstrates "Three Screens" Solutions at The Cable Show
RipCode gets $12.5M in funding