AllDigital Holdings, Broadcast International to merge
Cloud services platform provider AllDigital Holdings is merging with content management system (CMS) vendor Broadcast International to create an entity that is expected to provide a scalable, flexible and secure digital broadcasting platform that permits any form of digital media--including live and video/audio on demand, digital services and peripheral applications--to target and reach audiences via mobile devices, desktop computers and digital televisions.
The merger is an all-stock transaction in which AllDigital shareholders will get share representing 54 percent of Broadcast International common stock.
The agreement "represents a transformational opportunity for both Broadcast International and AllDigital," according to Paul Summers, AllDigital's chairman-CEO, who will be CEO of the newly combined AllDigital Broadcast. "Our goal is to radically redefine the way in which companies and organizations manage the distribution of their digital media assets" with a long-term version of developing a platform where "virtually anyone can become a global broadcaster."
By combining their resources, the two companies hope to expand and strengthen the focus of their target markets, which include media and entertainment, enterprise, government and non-profit organizations that want to create their own broadcasting networks.
"Using our unique combination of digital broadcast technology and related cloud services, we believe our clients can create one or more 'digital television channels' that can target a single device or, literally, billions of connected devices," Summers said.
AllDigital Broadcast is starting its life with an impressive customer base that already includes Rogers Communications (NYSE: RCI), Cox Media Group, Akamai, Sermon.net, Bank of America, Fujitsu, Hewlett Packard (NYSE: HPQ), Telecable, WestStar TV, NetTALK, Dish Mexico and Zions Bank.
In the news release, the company said it expects to be able to provide "existing and prospective clients with more powerful, affordable, and complete digital broadcasting solutions" by giving IT departments "total control over the distribution of their digital media assets."
- AllDigital Broadcast issued this press release