Avail-TVN has received $100 million in financing from investors including The Carlyle Group. Carlyle, which will be Avail-TVN’s largest investor, is putting in $50 million equity, a source says. Silicon Valley Bank, RBS Citizens and Bank of America, which are providing debt financing, are responsible for the other $50 million, the person says. Avail-TVN provides advanced digital video services and plans to use the funds to expand. Its first investment will be to buy On Demand Group, of the U.K.
Avail-TVN, the largest global provider of advanced digital video services, today announced that global alternative asset manager The Carlyle Group (NASDAQ: CG) will lead $100 million of new investment funding enabling Avail-TVN to acquire UK-based On Demand Group, a provider of video on demand services to some of the biggest television brands outside of the United States. Carlyle joins existing Avail-TVN investors including Columbia Capital, Valhalla Partners, Novak Biddle and Pioneer Ventures. Equity for the investment comes from two Carlyle funds: Carlyle U.S. Growth Fund III and Carlyle Europe Technology Partners II. Debt funding is provided by Silicon Valley Bank, RBS Citizens, N.A. and Bank of America, N.A. With this investment, Carlyle is now Avail-TVN’s largest investor.
Avail-TVN will use this investment to fund international expansion and the development of new products and services for the company’s global client base of content providers and multichannel video service providers. The first investment from this new financing, the acquisition of On Demand Group from SeaChange International (NASDAQ: SEAC), expands Avail-TVN’s reach to more than 25 countries, serving more than 70 million households globally. Major markets include North America, the Caribbean, Latin America, Europe, Middle East and Asia.
“Our strategy has been to invest in leading players across the digital media ecosystem and incorporate them into one company to build Avail-TVN into the largest provider of advanced digital video services worldwide,” said Ramu Potarazu, Avail-TVN’s chief executive officer. “The Carlyle Group’s investment supports that vision, and provides the capital and global network to build upon this foundation both domestically and internationally. With the integration of On Demand Group, we broaden our capabilities, extend our distribution and are able to further develop monetization opportunities for our customers in the rapidly-changing digital media space.”
“The market opportunity for Avail-TVN continues to grow,” said Phil Herget, Avail-TVN’s chairman. “With new partners on board and an expanded global reach, the company is poised to capitalize on trends and generate revenue across the video value chain.”
On Demand Group which provides digital media services for some of the biggest television brands outside of the US, will continue to service its customer base of leading broadband, television and mobile service providers. The company provides transactional video offerings to operators in 20 countries. Merging the two companies brings together a diverse customer base, strong content relationships with leading entertainment and media companies around the globe, highly developed and proven workflow and delivery systems, a wealth of entrepreneurial management talent and the finance and scale to drive aggressive revenue growth. Tony Kelly, CEO at On Demand Group, will now report to Avail-TVN CEO, Ramu Potarazu, and serve as a member of the executive management team.
“We see tremendous revenue value creation opportunities in the global digital media space as technology continues to revolutionize the way consumers access premium video entertainment,” said William Darman, principal, The Carlyle Group. “Avail-TVN is an innovator helping organizations across the value chain to continue to monetize video content in new ways and this joint investment by The Carlyle Group’s U.S. and European growth funds is testament to the growth prospects we see in this sector over the coming years.”
“With the addition of the On Demand Group, Avail-TVN becomes the largest provider of digital video in the world, reaching more households in more countries than any other company in the space,” said Will Smales, associate director, The Carlyle Group. “As the digital video market continues to evolve and mature, the company is poised to capitalize on opportunities around the globe.”
Stephens Inc. was an advisor to Avail-TVN on the transaction.
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Liora Bram Cheryl Delgreco
Media Strategies Media Strategies
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $159 billion of assets under management in 94 funds and 63 fund of fund vehicles as of March 31, 2012. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,300 people in 32 offices across six continents. For more information, please visit http://www.carlyle.com
Avail-TVN is the largest global provider of digital video services. Working with both service providers and content owners, Avail-TVN is focused on providing its global customer base solutions that simplify content management and distribution, and enable the monetization of content. The company applies its managed service approach, powered by proprietary technology, to the areas of video-on-demand, linear content delivery, TV Everywhere, advanced advertising and data services. For more information, please visit http://www.avail-tvn.com.
About On Demand Group
On Demand Group develops and manages the on-demand businesses of market-leading service providers in Europe, the Middle East and Asia. The company’s service and technology suite, including the VZ and Adrenalin content management platforms, is utilized by the service providers that are proliferating high-quality streamed video to millions of cable, IPTV and mobile subscribers. Visit www.ondemand.co.uk