E-commerce firm Amazon agreed yesterday to acquire US-based multiscreen video technology provider Elemental Technologies in a deal that will give exits to several corporate investors.
Neither company disclosed the price but a person familiar with the situation has told The Information that Amazon will pay more than $500m in cash. The acquisition was made through its Amazon Web Services (AWS) subsidiary.
Elemental supplies video software used for multiscreen content delivery, helping media customers provide high-quality live and on-demand video online.
The company will continue to provide its services to existing customers but will also integrate the technology more closely with AWS, helping it to introduce more complete services for media clients seeking cloud and hybrid architecture services.
Andy Jassy, senior vice president of Amazon Web Services, said: “Together, we will collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models as they continue to innovate their services for viewers.”
Elemental had raised more than $43m since 2006, including $14.5m in a December 2014 series D round led by telecommunications firm Telstra that also included broadcaster BSkyB, General Catalyst Partners, Norwest Venture Partners and Voyager Capital.
Other investors in Elemental include In-Q-Tel, Steamboat Ventures, the China-based venture capital firm affiliated with media and entertainment company Walt Disney, which backed a $7.5m round in 2010 and a $13m round two years later, and virtualisation software provider Citrix, which invested an undisclosed sum in 2011.
– Image courtesy of Elemental Technologies, Inc.