OpenVault, the Hoboken, N.J.-based broadband technology company, said Wednesday that it has purchased VelociData for an undisclosed sum, a move it says will help it expand into new markets and product lines.
OpenVault helps broadband service providers better optimize and monetize their networks. With VelociData’s research and development capabilities and list of top-tier customers in the U.S. and Latin America, the company claims it will be able to serve cable, fiber and wireless broadband operators better.
“The broadband environment is changing so quickly that it seems like each time we help our customers solve one data problem, a new one crops up,” OpenVault founder and CEO Mark Trudeau said in a press release. “VelociData’s focus on engineering and R&D gives us the resources and the synergies that will enable our product and sales teams at any scale to provide even more advanced solutions that will keep the broadband industry ahead of the fast pace of technology, consumer demand, and the competition.”
In an interview, Trudeau said VelociData provides his company with the missing pieces to attract larger Tier 1 providers.
“Certainly having cut or teeth on the small operators, it’s very hard to move upmarket and get that kind of credibility. VelociData has already been in at some Tier 1’s, and that right overnight gives us credibility,” Trudeau said. Because not only are these Tier 1’s long-term customers, but their referenceable customers as well. It does allow us to tell the Tier 1 story. And it’s very complementary to what we do.”
Trudeau explained that OpenVault has taken a different approach to the market originally, less about the data collection and data science and scalability side, but focused more on use cases. That made sense for Tier 2 and Tier 3 clients because they needed that kind of help. VelociData was more about solving the big data problem, making it available and staging it to be able to be used.
“The beauty of what we’re doing by combining is they were solving the data problem, we were solving the domain and the use case problem. Now we have both,” Trudeau added.
The VelociData purchase is the first major purchase for Open Vault since it attracted investment from three existing customers -- Service Electric Cablevision, Service Electric Cable TV & Communications, and Blue Ridge Communications -- in October. That investment was targeted at driving expansion via mergers and acquisitions, organic growth, and increased visibility – most notably increased market activity in Europe and Latin America.
Trudeau said that OpenVault will continue to look for M&A opportunities in the data business.
“The idea behind the funding was to step on the gas as a company,” Trudeau said, adding that the company is also looking to grow organically, expanding its sales reach especially in Latin America. “...Our eyes are wide open. We’ve got a set of investors that are willing to fund additional acquisitions, and we’re going to do it in an opportunistic way. But we’re going to continue to grow organically as much as we can too.”
According to OpenVault, the VelociData purchase immediately increases its size and scale in the U.S. and Latin America; gives it access to more than 120 patents worldwide in the area of data science; brings a proven world-class R&D team to the company to develop new products specifically for the broadband industry; accelerates its strategy to provide additional Closed Loop Automation solutions, including Profile Management Application and enhanced data collection functionality like Streaming Telemetry; and offers more diverse deployment options, including the public cloud, private cloud, on-premises and appliances, for operators.
Trudeau said OpenVault, which currently has about 50 employees, will bring on VelociData’s 12 workers as part of the deal.
“Whether it’s better performance or subscriber usage insights, real-time data is the key to unlocking more value from broadband networks,” VelociData CEO Barry Rudolph said in a press release. “As part of the OpenVault organization, we will be able to help broadband providers not only to collect network data, but also to make that data actionable in ways that will immediately improve bottom line results while enabling future shifts to more highly automated intelligent networks.”
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Mike Farrell is senior content producer, finance for Multichannel News/B+C, covering finance, operations and M&A at cable operators and networks across the industry. He joined Multichannel News in September 1998 and has written about major deals and top players in the business ever since. He also writes the On The Money blog, offering deeper dives into a wide variety of topics including, retransmission consent, regional sports networks,and streaming video. In 2015 he won the Jesse H. Neal Award for Best Profile, an in-depth look at the Syfy Network’s Sharknado franchise and its impact on the industry.
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