In a move to strengthen its business in video streaming tools, Telestream agreed to buy the Anystream division of Grab Networks for an undisclosed price.

Nevada City, Calif.-based Telestream is a 12 year old company that specializes in software that converts video from one format to another so that it can be played on any device or over the web. Anystream has a similar position in the software video transcoding market. Telestream has millions of consumers using its conversion software, but its big focus is on enterprise-class video transcoding for corporations that stream video.

Anystream was founded 10 years ago and has 30 employees in Sterling, Va. Anystream’s Agility products allow media companies to produce and transcode video to publish on the web. More than 600 media companies in 38 countries use it today.

Dan Castles, chief executive of Telestream, said in an interview that the deal will help the company accelerate its momentum among customers in the media and entertainment markets. Market researcher In-Stat estimates the transcoding market will grow from $197 million today to $297 million in 2014. That’s not a huge growth rate, but it shows the market is on the upswing. The deal is subject to closing conditions. Both companies are private.

Telestream has about 130 employees. Its big customers include CBS, BBC, CNN, Fox, CBC, Comcast, DirecTV and others. Rivals include Elemental Technologies. Telestream raised $19.3 million in its early years, with a funding most recently in 2001. Since then, the company has been profitable. It has paid for three acquisitions with its own money now.