Espial, a specialist in IPTV middleware and applications, agreed to acquire all of the outstanding shares of Kasenna in exchange for an aggregate of 4,722,224 Espial common shares, which before giving effect to the transaction represents 51.2% of the issued and outstanding shares of Espial and will represent approximately 33.6% of the issued and outstanding shares of Espial on an after-issue basis.
Kasenna offers a “PortalTV” suite that allows TV providers to deliver advanced features such as recording and pausing live TV, PVR – both Network-based and Local, StartOver TV, Customized EPG, On-Screen Caller ID, Pay-per-View, Video-on-Demand, Favorites, Reminders, Weather Services, Network Games, etc. Kasenna’s platform leverages a centralized delivery architecture although, if necessary, it can adapt to a decentralized distribution and delivery architecture. Video servers are designed to operate as cache servers, library servers or hybrids. Storage system flexibility allows Kasenna servers to employ Direct-Attach Storage or Shared Storage subsystems (NAS or SAN). Kasenna is headquartered in Sunnyvale, California, and also has an engineering center in Bangalore, India.
Espial also supplies middleware that controls the overall viewing experience by managing IPTV applications, TV and video, along with subscriber interactions between the set-top box and the network. Espial applications include Electronic Program Guides, Video on Demand, Interactive Content Portals, Web browser, PPV, etc. Espial is based in Ottawa.
The companies cited a number of synergies for their merger, including,
- Increased number of Tier 1 video service provider customers, a footprint in over 100 customers worldwide with no overlap and a combined 2.4M+ IPTV licenses in deployment for one or more of our products.
- Broader channel relationships with equipment vendors and system integrators.
- Larger sales force, support and fulfillment capacity across EMEA, Asia & Americas.
- Broader product portfolio includes browsers, video servers, client & server middleware, and applications.
- Differentiated best-of-breed technology with a strong patent portfolio.
- Strong balance sheet, financial and cost synergies that will be accretive to Espial shareholders in 2009.
http://www.espial.comhttp://www.kasenna.com
