American open-source video platform Kaltura has acquired Israeli pay TV startup Tvinci. The financial terms of the transaction were not disclosed, according to VentureBeat.
Prior to the acquisition, Kaltura was mainly providing video-on-demand and ad integration services. The acquisition is part of the company's strategy to gain flexibility of service in the video industry. The firm said the addition of pay Over-the-Top (OTT) TV services would make way for revenue growth. Customers are estimated to spend more than $17 billion on these services by 2017, the report detailed.
Under the terms of the said deal, Tvinci's 60-person team will be integrated into the Israel-based tech division of Kaltura. Ofer Shayo and Ido Wiesenbert, the founders of Tvinci, will be given new top management positions in Kaltura, the report explained.
Kaltura was formed in 2006 and is currently headquartered in New York. To date, the startup has raised a total capital of $116 million, VentureBeat added.
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