Vecima Networks announced Tuesday (January 2) that it has closed its proposed $29 million acquisition of Concurrent Computer Corp.’s content delivery and storage business.

RELATED: Vecima Deals for Concurrent

The deal, announced in October 2017, will help Canada-based Vecima diversity further into the VOD and IP video content delivery sector, complementing a business that has been focused video decoders, products targeted to the commercial and hospitality industry, as well as DOCSIS 3.1-based network access gear.

Via the deal, Vecima will also inherit tech and product relationships that Concurrent has with MSOs such as Charter Communications and Altice USA, and obtain a relatively new platform that Concurrent has tailored to suit the needs of smaller cable operators.

RELATED: Concurrent Pitches Video ‘Springboard’ to Smaller Cable Ops

Concurrent sold its Real-Time business segment to Battery Ventures for $35 million in cash in May 2017.

Vecima said earlier that it expects that its business will generate more than $5.5 million in annualized adjusted EBITDA after closing, capturing synergies that include the removal of Concurrent’s public company costs.

“Each of our organizations has strengths and expertise that we bring to the table, and together we create a comprehensive networking and entertainment ecosystem capable of delivering class-leading quality, capacity and performance,” Sumit Kumar, president and CEO of Vecima, said in a statement. “With diversified products, a greater market reach, a superior growth profile, and a strong balance sheet, we are well positioned to provide enhanced value to our customers and our shareholders.”

Concurrent Computer Corp. announced this week that stockholders have given the thumbs up to a proposed sale of its content delivery and storage business to Vecima Networks.

That approval, occurring at a stockholder meeting held Wednesday (Dec. 13), arrives about two months after the deal was announced.

RELATED: Vecima Deals for Concurrent

Under the proposal, Vecima has put up $29 million in cash for Concurrent’s content delivery and storage business. Concurrent, based in Atlanta, works with operators such as Charter Communications and Altice USA, and recently introduced an offering tailored for smaller cable operators.

RELATED: Concurrent Pitches Video ‘Springboard’ to Smaller Cable Ops

In May, Concurrent sold its Real-Time business segment to Battery Ventures for $35 million in cash.

Vecima said earlier that it expects that its business will generate more than $5.5 million in annualized adjusted EBITDA after closing, capturing synergies that include the removal of Concurrent’s public company costs.

The deal for Concurrent should help to diversify and expand the video side of Vecima’s business, which today is focused on areas such as video decoders, products targeted to the commercial and hospitality industry, as well as DOCSIS 3.1-based access gear.

“The Board of Directors and our management team appreciate the overwhelming support of our proposals from Concurrent’s stockholders.  We expect to close the announced transaction with Vecima Networks by the end of the calendar year. ,” Derek Elder, president and CEO of Concurrent, said in a statement.

Looking to expand its presence with some tier 1 providers and bulk up its video technology portfolio, Vecima Networks announced Monday that it has inked a deal to acquire Concurrent Computer Corp.’s content delivery and storage business for $29 million in cash.

Concurrent, a VOD server and software pioneer based in Atlanta, counts Charter Communications and Altice USA among its tier 1 MSO customers. Earlier this year, Concurrent took aim at tier 2/3 operators with a new platform aimed at helping that group upgrade and advance their existing video platforms cost effectively, covering services such as VOD, live TV and cloud DVR.

RELATED: Concurrent Pitches Video ‘Springboard’ to Smaller Cable Ops

Concurrent’s delivery and storage business employs about 100 people and generated revenue of $27.6 million for the fiscal year ended June 30, 2017. Vecima said it expects to continue operating the business under the Concurrent brand.

Concurrent and Vecima expect to close the deal before the end of 2017.

In May, Concurrent sold its Real-Time business segment to Battery Ventures for $35 million in cash.

Concurrent is expected to have a debt-free balance sheet with about $67 million in pro forma working capital and “substantial retained tax assets” at the time of the deal’s closing with Vecima, Derek Elder, Concurrent’s president and CEO, said in a statement.

Vecima said it expects that its business will generate more than $5.5 million in annualized adjusted EBITDA after closing, capturing synergies that include the removal of Concurrent’s public company costs.

Concurrent is expected to file a preliminary proxy statement with the U.S. Securities and Exchange Commission within 30 days. It said that a group of stockholders representing about 17% of the issued and outstanding shares of Concurrent common stock have agreed to vote in favor of the proposed deal.

Canada-based Vecima has specialized in products such as video decoders, gear targeted to the commercial and hospitality industry, as well as DOCSIS 3.1, including nodes tailored for cable’s emerging distributed access architectures.

“Vecima believes that the rapid growth in IPTV delivery across both MVPD private CDNs and OTT providers will continue to accelerate,” Sumit Kumar, Vecima’s president and CEO, said in a statement. “Concurrent is a recognized leader in storing, protecting, transforming and delivering media assets.  Adding their solutions to our industry leading broadband internet access platforms, will allow us to deliver an end to end, massively scalable video and data solution to the market.”

Concurrent Computer Corp., a supplier of video content delivery and analytics technologies, has appointed Derek Elder as CEO, succeeding Dan Mondor, who had served in that role since April 2008.

Elder most recently was SVP and general manager of the DOCSIS & multiservice gateway unit of Arris, the cable and telecom supplier that merged with Motorola Mobility last April. Elder, named to Multichannel News’ “Forty Under Forty” in 2009, is also late of Tropic Networks, Cisco Systems, and Narad Networks.

 “We are pleased to welcome Derek to Concurrent,” said Concurrent chairman Steve Nussrallah, in a statement. “He brings a wealth of industry experience as well as tremendous leadership experience to the role and we look forward to his focus on accelerating growth in our businesses.” 

“I am honored to join Concurrent as CEO,” added Elder. “I am looking forward to helping drive profitable growth, breakthrough innovation, and solutions that help our customers achieve competitive advantage.” 

Elder received a Bachelor of Science degree from the University of Maryland University College and a Master of Business Administration from The Pennsylvania State University.

Nussrallah also expressed thanks to for his contributions over the past six years, including the introduction of new multi-screen software solutions, expanding Concurrent’s customer base, and achieving profitability over the last eleven consecutive quarter.

For the first quarter for fiscal 2015, ended September 30, Concurrent posted net income of $734,000 on revenues of $17.5 million, down from $17.2 million in the year-ago quarter.