Video Services Company Qumu to Merge with New York Firm
Minneapolis-based video services company Qumu Corp. on Tuesday announced that it will merge with Buffalo, New York-based Synacor Inc., another video services provider.
The all-stock deal is slated to close in mid-2020, the companies said in a joint release.
“This is a strategic and highly synergistic combination that creates operating software scale and accelerates growth,” said Synacor CEO Himesh Bhise in the release.
Qumu provides live and on-demand video services for a number of Fortune 500 companies, including Chase, Visa, and pharmaceutical giant GlaxoSmithKline plc. The company has more than 175 customers.
For its part, Synacor provides similar video and content services for more than 4,000 customers. Synacor is in the middle of a restructuring plan, having shed a major web portal services contract with ATT. The contract made up a sizeable part of Synacor’s revenue, the Star Tribune reported.
Synacor is expected to run a net loss of more than $9.2 million on about $120 million in revenue during its 2019 fiscal year. Last year, Qumu logged a $6.5 million loss on $25.4 million in revenue.
Together, the companies expect to again hit $120 million in annual revenue.
“As the demand for enterprise collaboration solutions continues to expand, we believe there will be a significant opportunity for us to position a combined email, video and identity offering to reach a much wider cross-section of the enterprise market with a scalable, highly secure and extensible solution for cloud-based and hybrid deployments,” said Qumu president and CEO Vern Hanzlik, who will become chief revenue officer of the combined company.