Thoma Bravo to Acquire Telestream

Private equity investment firm Thoma Bravo has entered into a definitive agreement to acquire Telestream, a provider of video transcoding and digital media software solutions.

No terms of the deal were announced but both companies noted that the transaction will help Telestream expand its core businesses and provide the company with additional capital for further market expansion and acquisition.

"This acquisition recognizes Telestream's history of market leadership, double-digit growth and profitability," said Dan Castles, Telestream's co-founder and CEO. "That growth would not be possible without our original investors and dedicated team of employees who have demonstrated a strong commitment to our customers. We look forward to our next phase of growth and expansion with Thoma Bravo as we continue to play a leadership role in the digital media industry."

Telestream's products are currently used by such companies as CBS, BBC, CNN, FOX, CBC, Comcast, Direct TV, Time Warner, MTV, Discovery, and Lifetime.

In statements accompanying the announcement of the deal, analysts at the business research firm Frost & Sullivan noted that the worldwide multi-format transcoders market is poised for strong growth.

"Based on Frost & Sullivan's analysis, Telestream is the market leader for the global video transcoders market," explained Avni Rambhia, senior industry analyst for digital media at Frost & Sullivan in a statement.

Telestream also reported that it had been profitable since 2001 and had self-financed three acquisitions: compression specialist Popwire in 2006; live webcasting and screencasting provider Vara Software Ltd. in 2008; and Anystream, a provider of automated multi-platform media publishing solutions in 2010.

At the close of 2011 Telestream will have produced thirteen straight years of record sales growth.