SeaChange International announced today that it purchased Netherlands-based eventIS Group B.S.
Prior to the purchase, eventIS Group was privately owned. The company provides VOD and linear broadcast software and other related services to cable TV and telecommunications companies, primarily in Europe.
Under the terms of the agreement, SeaChange forked out $36.6 million upon the closing of the transaction today. In addition, SeaChange also has to pay $1.7 million in cash to the former eventIS shareholders on each of the first three anniversary dates following the acquisition.
SeaChange is also obligated on each of the aforementioned anniversary dates to issue shares of restricted stock of SeaChange equating to $1.1 million annually to the former eventIS shareholders.
The purchase price will also include an additional performance-based component principally related to the achievement of certain annual revenue targets for eventIS and SeaChange products and services. The revenue performance metrics will cover the three-year period ending Jan. 31, 2013, with payment upon achievement of these metrics occurring annually.
Last year, eventIS generated U.S. GAAP revenues of approximately $13 million and was profitable, according to SeaChange. The company currently has approximately 70 full-time equivalent employees.