Australia-based telecommunications company Telstra agreed on Monday to fully acquire portfolio company Ooyala, a US-based personalised video company, for $270m.
Founded in 2007, Ooyala provides a personalised online video service that incorporates management, publishing, analytics and monetisation. It will continue to operate under its own name as an independent subsidiary of Telstra.
Telstra already owned a 23% stake in Ooyala after investing $61m over the past two years through its Telstra Ventures unit, but the deal will increase its share to 98%.
Ooyala had raised more than $120m in total funding, with investors also including smartphone producer Motorola Mobility, which invested an undisclosed amount in 2011, internet company Google, trading firm Itochu, private equity firm CID, and venture capital firms Rembrandt Venture Partners and Sierra Ventures.
Telstra and Ooyala now plan to build a company that will be a global leader in the online video services and analytics sector.
Jay Fulcher, chief executive of Ooyala, said: “With today’s news, we combine the backing of one of the strongest telecommunications companies in the world with the intensity and agility of an independent Silicon Valley company.
“This combination accelerates our growth and pace of innovation, while we remain laser-focused on helping media companies everywhere win in an industry undergoing massive transformation.”