Swedish-based Net Insight has signed an agreement to divest its Sye consumer streaming business for SEK 350 million in cash to a Fortune 500 company. The transaction is expected to be completed in the coming weeks.
The Sye technology is designed specifically for consumer live video streaming.
"The fact that a Fortune 500 company wants to acquire Net Insight's internally developed consumer streaming solution is a proof point of our ability to develop world-class video transport solutions," said Gunilla Fransson, chairman of the board of Net Insight. "Sye has accelerated Net Insight's transformation to an advanced media technology company and has added invaluable competencies that will remain with Net Insight also after the divestment."
The divestment will allow Net Insight to increase focus and investments in its core B2B media transport business. Competencies gained while developing and launching Sye - for example, related to virtualized software and cloud-based technology - are expected to continue to benefit Net Insight's Media Networks business area.
The transaction involves divestment of 100% of the shares in a wholly owned Sye business subsidiary. Under the agreement, all relevant IPRs and contracts and about 30 employees and consultants will be transferred to the buyer. Net Insight's Streaming Solutions business area incorporates the Sye business, and the business area operates on an independent basis. As a result, the effects on the rest of Net Insight operations will be limited. The Streaming Solutions business area had operating earnings of SEK -37.5 million for the first nine months of 2019, and to date Net Insight has invested around SEK 215 million in Sye.
The transaction is subject to customary closing conditions.