Open-source video platform Kaltura has purchased pay TV service startup Tvinci, the companies announced today. Financial terms of the deal were not disclosed.
Tvinci’s white-label platform offers paid-TV providers with over-the-top (OTT) TV services to deliver linear and on-demand TV content through a variety of devices, such as smartphones, tablets, smart TVs, and set-top boxes. Kaltura said it plans to integrate this technology into its own services, which allow clients to host, publish, manage, monetize, and analyze video content across several different industries.
The acquisition makes sense for Kaltura, which aims to be a Swiss Army knife of sorts for anything related to video. Also, the company said pay OTT TV services presents a huge opportunity for future revenue growth, with clients estimated to spend over $17 billion on OTT TV services by 2017. Prior to the Tvinci sale, Kaltura was primarily focused on video-on-demand and advertising integration services.
As terms of the sale, Tvinci’s 60 employees will join Kaltura’s Israel-based technology team, while Tvinci founders Ofer Shayo and Ido Wiesenberg will assume new roles within Kaltura’s top management team.
Founded in 2006, New York-based Kaltura closed a $47 million round back in February. The startup has raised $116 million in funding to date.