Cloud-based software and services company serving internet, global video and communication providers, as well as device manufacturers, governments, and enterprises, Synacor, recently announced a new merger. The merger is with Qumu, a leading provider of tools for the management, creation, security, and distribution of live and on-demand video solutions.
CEO of Qumu, Vern Hanzlik, noted that he is excited to be working with a company that serves some of the world’s largest providers for global video, internet, and communication solutions, including T-Mobile, CenturyLink, and HBO. The merger between Synacor and Qumu will allow Qumu to extend the use of its video platform to a much wider audience, through Synacor’s enterprise clients and partners. The union will also allow Qumu to become a part of a more comprehensive suite for collaboration, which already serves more than 500 million end-users around the world.
Achieving Exceptional Market Reach
The collaboration between Synacor and Qumu will bring together a state-of-the-art cloud ID identity and access management platform, with enterprise-level video technology. Together, both Synacor and Qumu will achieve an enhanced operating scale and improved global presence, with the resulting company expected to generate over $120 million in annual revenue.
According to Vern, at this time, there’s nobody else in the Enterprise Video space that has the same amount of market reach. This merger allows Qumu customers to benefit immensely from a much broader footprint, and greater financial strength.
According to CEO of Synacor, Himesh Bhise, the partnership is a “highly synergistic” combination, that creates exceptional operating software scale. With Qumu, Synacor will be a software-focused company with about $50 million in high-margin recurring revenue. The Synacor advertising and portal business will also continue to contribute to the top and bottom line for Synacor going forward.
An Exciting Future for Both Companies
As Bhise noted, the collaboration between Synacor and Qumu marks an exciting step forward for both companies, as well as the employees, shareholders, and customers of the two brands. The transaction will be structured as an all-stock deal, according to the official press release. After closing the purchase, Himesh Bhise will be continuing as the CEO of the company, with Tim Heasley as the CFO of Synacor. Additionally Vern Hanzlik will be joining Synacor as a CRO for Services and Software.
