OpenTV Corp. has acquired cable advertising sales management firm CAM Systems in a cash and stock deal valued at $19.5 million.
OpenTV said the deal will advance its ability to provide interactive, addressable and on-demand advertising services to broadband operators. With the addition of CAM's assets and customers, OpenTV said it now provides ad inventory management systems in 13 top TV markets, and, through the agreement, has added MSO customers such as Time Warner Cable, Cox Communications, Bright House Networks and Charter Communications. The purchase also enables OpenTV to extend its existing relationship with Comcast Spotlight. The Lenfest Group founded CAM Systems in 1996.
"We consider CAM Systems' customers as the most valuable asset acquired by OpenTV," writes B. Riley & Co. Analyst Ali Mogharabi. Further, "we believe the deal creates an opportunity for OpenTV to also cross sell its interactive, addressable and on-demand front-end advertising solutions."
"Adding CAM Systems and its customer base to our existing AdVision inventory management portfolio puts us at the heart of the estimated $5 billion local cable advertising market," said OpenTV Chairman & CEO Jim Chiddix, in a statement. "This transaction is also an important stepping stone toward the provisioning of a complete interactive advertising solution."