Concurrent Acquires Vivid to Expand VOD Offerings
In the merger, each share of outstanding Vivid capital stock was exchanged for 2.6 shares of Concurrent common stock. In aggregate, Concurrent issued a total of 2.2 million shares to the current stockholders of Vivid and has reserved 376,300 shares for issuance upon the exercise of assumed Vivid stock options.
Vivid's and Concurrent's VOD architecture (called "XSTREME") are similar in that they both offer the digital cable industry video streaming, interactive application support, and purchase tracking in a PC-based server environment.
However, Vivid fills an important hole in Concurrentnamely, a technical alliance with General Instrument, in which Vivid has integrated its system with GI's advanced digital set-tops. Concurrent has integrated its servers with Scientific Atlanta's Explorer 2000 digital boxes. Compatibility with the two largest set-top box manufacturers in the US will give Concurrent a leg up in competing with other companies in the VOD space, namely SeaChange International and DIVA Systems.
"As a result of all the consolidation in the cable industry, it makes sense for us to merge our GI digital video server solution with the company that offers the best SA digital video server solution," says Fred Allegrazza, founder and president of Vivid. "Concurrent's technology provides the most viable, robust SA-compatible solution; and thus we feel that Concurrent is the right company to leverage the Vivid technology."
Vivid will be integrated into Concurrent's XSTREME division. Allegrazza will report to Steve Nussrallah, president of the XSTREME division, and the Vivid facilities in Chalfont, PA, a suburb of Philadelphia, will become a new Concurrent office.