IMAX Corporation has acquired SSIMWAVE, a company specializing in AI-based quality assurance for video, for $21 million.
Specifically, Imax is buying SSIMWAVE for $18.5 million in cash and $2.5 million in stock, with the potential to receive $4 million in earnouts if financial objectives are met.
SSIMWAVE’s signature product is the Video Experience Automation platform, which aims to help streaming services assess video quality at scale, while minimizing quality drop-offs and distribution expenses.
This technology, the companies said, enables streamers and broadcasters to deliver high quality video both live and on-demand. SSIMWAVE boasts big-name clients like Disney, Paramount Global and Warner Bros. Discovery.
Notably, SSIMWAVE was dubbed Best New Streaming Technology winner at the NAB Show’s Product of the Year Awards in 2021 and 2022. It also scooped up two Emmy awards in 2015 and 2020, respectively.
Imax said it will work with SSIMWAVE to expand the tech company’s product internationally and develop “new solutions for delivering Imax-quality video experiences across platforms.”
The acquisition is expected to have “minimal financial impact” in 2022 and be accretive in 2023.
Abdul Rehman, CEO and co-founder of SSIMWAVE, stated, “Viewers and content creators expect more from video experiences. By joining Imax, SSIMWAVE will be even better positioned to preserve creators’ intent and enable engaging, differentiated viewing experiences to millions of users across platforms.”
“We’re excited to join Imax and tap into its global scale and expertise as more streamers turn to SSIMWAVE to ensure the best viewing experiences while reducing bandwidth costs,” he added.
Acquiring SSIMWAVE enables Imax to build on Imax Enhanced, the company’s expanded aspect ratio for streaming services. Imax touts the product offers “the most immersive viewing experience outside of a theater.”
Imax Enhanced titles are available across streaming platforms like Disney+, Rakuten TV, Chinese OTT platform iQIYI and others. Imax Enhanced is also integrated into over 10 million certified devices.
“By putting the power of our global brand behind [SSIMWAVE’s] award-winning engineering team and product suite, Imax takes a big step toward a new horizon in our ability to deliver the best images for any creator, across every screen,” stated Imax CEO Rich Gelfond.
“In the near-term, SSIMWAVE brings to Imax new, SaaS-based revenue and a world-class client roster that tightly aligns with some of our strongest, most successful content partnerships,” he said.
Other distributors also recently scooped up tech companies. Synamedia in July acquired Quortex to enhance its cloud video product. While TiVo parent Xperi recently bought OTT software provider Vewd to increase its connected TV footprint.