Following our report yesterday of an impending sale of LiveU — one of many huge builders of reside streaming {hardware} and software program, utilized by some 3,000 main media organizations — as we speak the corporate and its purchaser Carlyle confirmed the deal.

The vendor is Francisco Partners, one other PE agency that acquired LiveU simply two years in the past for $200 million. LiveU and Carlyle are usually not disclosing the phrases of this newest sale, however well-placed sources inform us it’s for over $400 million. Carlyle famous that fairness for the funding will probably be offered by Carlyle Europe Technology Partners (CETP) IV, a fund that invests in center market technology-focused alternatives in Europe and the U.S. LiveU is predicated out of Israel, and that is Carlyle’s first tech acquisition within the nation.

LiveU’s valuation doubling over two years is partly a mirrored image of the state of media as we speak. Specifically, video is the centerpiece of how content material and knowledge are consumed, and its presence is barely rising, and so firms constructing instruments to enhance how it’s captured and transmitted are sizzling.

Another fillip to the video market has been the pandemic. LiveU will probably be used to document and transmit hundreds of hours of occasions from the Tokyo Summer Games, which will probably be extra reliant than ever on reside video content material given the absence of reside audiences for a lot of key occasions.

But additionally it is on account of the truth that LiveU itself is rising and consolidating its place. Most not too long ago, it acquired its channel accomplice within the UK market, Garland Partners, to construct extra direct relationships and broaden enterprise with its purchasers within the area.

The firm has constructed out a vertically built-in proposition, which incorporates not simply cameras and different gear for capturing video, but additionally encoding gear to ship it, after which {hardware} for receiving and utilizing the fabric.

Alongside that, it additionally has constructed software program to compress knowledge — important for with the ability to seize high-quality video but nonetheless with the ability to transmit it — which works utilizing a hybrid of various sorts of mobile, satellite tv for pc and different networks.

In quick, it’s a resourceful system, which can be utilized in a modular or all-in deployments, and that flexibility and reliability have led to it signing on some 3,000+ media organizations as prospects, who’ve used it throughout a lot of high-profile occasions (sporting occasions and massive information occasions function strongly) in addition to for day-to-day video protection.

While Francisco has made a comparatively fast flip of LiveU as an asset, it seems like Carlyle might need extra strategic plans. The PE agency mentioned it “will use its deep experience in the media tech sector to support LiveU’s growth ambitions.” The firm already invests in adjoining firms like Disguise, NEP, The Foundry, Vubiquity, BTI Studios and The Mill. It additionally seems like LiveU will probably be used to assist the agency proceed the consolidation play.

“Carlyle will seek to further consolidate LiveU’s market position through M&A activity and organic growth while capitalizing on the rapidly growing demand for high-quality live video transmission,” LiveU famous in an announcement, including that this may also embrace serving to forge extra media partnerships. The rising ubiquity of 5G will speed up that pattern, it mentioned.

“We’re excited to partner with Carlyle as we look to expand LiveU’s global footprint and service offering. This is a significant milestone for LiveU and represents a strong vote of confidence in our business,” mentioned Samuel Wasserman, CEO and cofounder of LiveU, in an announcement. “Carlyle brings deep industry expertise with their track record in the media and technology space alongside a global network. We greatly thank Francisco Partners and IGP Capital for their support and partnership over the last few years.”

“Carlyle has a history of investing in fast-growing and highly innovative, disruptive media technology companies and is truly excited to partner with LiveU which is at the forefront of a rapidly growing market,” added Michael Wand, MD and co-head of the CETP advisory workforce, in an announcement. “Our partnership with the LiveU team will allow us to support their growth, driven by a mixture of expanding into new verticals, targeted M&A activity and through further developing their relationships with key media broadcasters, particularly in live sports where we are witnessing an exploding demand for live content. We believe that the ongoing shift towards high quality real-time video content, the cost advantages of bonded cellular versus alternative transmission technologies, and the opportunity to bring live broadcast to hitherto neglected areas such as semi-pro or non-professional sports, provides an enormous growth potential for LiveU.”

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