Telestream’s purchase of Massachusetts-based IneoQuest, the company’s seventh acquisition, is larger than the company’s previous six combined. “This puts us on a whole new level,” Telestream Chief Executive Officer Dan Castles said.
The Nevada City company is a privately held provider of software and hardware products for video capture, encoding and transcoding started with 11 employees 11 years ago that has grown to more than 400. Its purchase of IneoQuest should make the company even more lucrative.
The merger should eliminate what Chief Executive Officer Dan Castles referred to as blind spots in the video enterprise.
“What Telestream has done is to be focused on helping people who create content,” Castles said. “We get that content ready and packaged for mass distribution. We kind of say goodbye when the content goes to all the desktops and all the homes. We don’t do that.
“IneoQuest would say their roll is to monitor the live content that’s being distributed to all the eyeballs. So they’re on the distribution side. One way of thinking about this is there is contribution and there is distribution. They’re into distribution. So the new Telestream is what we’re calling from creation to the viewers.”
Castles said the merger makes Telestream one of the world’s only companies that allows viewers to capture an image on camera, help people ingest that content, create the final piece, and then quality control that final content.
“That’s when we hand over that to the people that oversee that content and with the acquisition, we will also monitor that content.”
The ultimate process means, according to Castles, the video production process through the new Telestream will be unparalleled.
“Cradle to grave, the users of our combined products will be able to use the best quality possible from initial creation to the desktop viewer … There used to be a start and a stop point. Now it runs the entire gamut … We don’t have a particular blind spot anymore. Before, it was, ‘No, we don’t go down that street.’ Now we go down all the streets. That’s very exciting for us.”
From the start of merger talks, the process took a little more than a year.
The deal was signed last week, but as Castles put it, they don’t have the keys to the proverbial car yet. There’s a three-week legal process, and the target date is March 24 for closing and officially merging.
Castles said the companies have combined revenues well in excess of $100 million but wouldn’t go into more detail. He also said there should be additional jobs in Nevada City. And while he wouldn’t specify, he did say the new jobs should total in double figures.