U.S. telecommunications company AT&T Inc (NYSE: T) has agreed to buy Quickplay Media Inc, a Toronto-based managed video platform that powers premium video over all networks and devices. No financial terms were disclosed for the acquisition, which is expected to close in mid-2016. The primary seller in the deal is U.S. private equity firm Madison Dearborn Partners, which acquired a majority stake in Quickplay for US$100 million in July 2012. Last year, Madison Dearborn and partners Orix Ventures and Difference Capital Financial invested an additional US$57 million in the company. Dallas, Texas-based AT&T said the Quickplay acquisition will enhance its video content delivery capability.
AT&T to Enhance Next-Generation Video-Delivery Platform with Acquisition of Quickplay from Madison Dearborn Partners
May 16, 2016
DALLAS–(BUSINESS WIRE)–AT&T* plans to acquire Quickplay Media, Inc., a leader in powering over-the-top (OTT) video and TV Everywhere services, from Madison Dearborn Partners. The acquisition builds on the companies’ existing relationship. Quickplay’s platform currently supports AT&T’s U-verse TV Everywhere offering and will support the streaming offers — DIRECTV Now, DIRECTV Mobile and DIRECTV Preview — that AT&T plans to introduce later this year. These new plans will let viewers stream DIRECTV content over the Internet to virtually any device.
“Our strategy is to deliver video content however, whenever and wherever,” said John Stankey, CEO, AT&T Entertainment Group. “Quickplay’s multitenant IP distribution infrastructure, combined with AT&T’s leading scale in IP connected end points, will allow us to host and distribute all forms of video traffic. We intend to scale and operate an industry-leading video distribution platform, and viewers will get the high-quality online video viewing experience they desire.”
“We’ve spent more than a decade developing an advanced technology and service platform that can deliver premium video content to any device and over any network. Our solution is highly automated and scalable. With AT&T, we’ll have the resources we need to further scale, grow the business, and continuously enhance that platform,” said Wayne Purboo, founder and CEO, Quickplay. “Our team is proud of what we’ve built so far and excited to join the AT&T family. This combination will help us power the next generation of video services.”
AT&T plans to retain Quickplay’s more than 350 employees and contractors. “Quickplay’s talented team of people is critical to our success,” Stankey said. “Their knowledge and skills are a key part of executing our video strategy.”
AT&T plans for Quickplay to maintain its high level of service and continue to support and expand its global customer base, grow its managed platform services and continue to enable other companies — from video providers to content distributors — to deliver premium video to any device and over any network.
The transaction is subject to pre-merger review under the Hart-Scott-Rodino Act in the U.S. and the Competition Act in Canada and to other customary filings and approvals. AT&T and Quickplay expect to close the deal in mid-2016. The companies did not disclose financial terms.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
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About Madison Dearborn Partners
Madison Dearborn Partners (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP’s formation in 1992, the firm has raised seven funds with aggregate capital of over $21 billion and has completed approximately 130 investments. MDP invests in businesses across a broad spectrum of industries, including telecom, media and technology services; financial and transaction services; business and government services; health care; basic industries; and consumer. Noteworthy TMT investments include Asurion, Cbeyond, Intelsat, Liquid Web, NextG Networks, Q9 Networks and Univision. For more information, please visit www.mdcp.com.
AT&T Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.
AT&T Corporate Communications
Eric Ryan, 212-803-2644
Photo courtesy of Reuters/Rick Wilking