New York City, NY /PRNewswire/ - Frankly Inc. (TSX VENTURE: TLK) (Frankly or the Company) has entered into an agreement to acquire Vemba, a leading video asset management, syndication and monetization platform in a move that strengthens the Company's position as the most advanced Over-The-Top (OTT) Video Management and Cloud Playout system for broadcasters. The acquisition complements Frankly's 20-year history of powering multiscreen workflows, by streamlining video syndication across content partners, and delivering live video channels with dynamic ad insertion (DAI) for rapidly growing OTT audiences.
"Vemba has developed unique capabilities that simplify the management, syndication, tracking, and monetization of video assets delivered anywhere," said Frankly's Chief Executive Officer Lou Schwartz. "Their strengths in assembly and scheduling of discrete linear video streams support Frankly's focus on live, linear video to any connected device. Together with Vemba, we plan to create an unmatched offering of live and video-on-demand asset management, syndication and monetization for OTT delivery. As a result we expect to be able help broadcasters and other media companies improve OTT multiscreen workflows, while providing more personalized viewing experiences for audiences consuming streaming video content on any Internet connected device or social media destination."
Mr. Schwartz continued: "Vemba is the premiere video syndication platform serving traditional media companies such as CNN and newer digital brands such as Vice Media, among other notable broadcasters. By combining these video workflows with our existing live video and clipping pipeline, our streaming video offering will address a broader set of requirements for the world's largest media companies, enabling us to tap a larger portion of their annual digital spend. Video sharing to owned and operated properties, as well as third party partners, is a major obstacle today. Adding those capabilities to our current offering will further differentiate Frankly in a noisy market. Moreover, this transaction will bring together the most talented teams in the industry."
Norbert Horvath, Vemba's Founder and Chief Technology Officer, who will become Frankly's Chief Product Officer following the transaction's closing, added: "This agreement allows Vemba to continue executing on our strategic vision and expand our abilities to serve our clients under the Frankly banner. Frankly has established a commanding footprint in the broadcast space, and combining our teams will create an extraordinarily compelling OTT multiscreen platform for the industry."
According to a study by Allied Market Research, the global OTT market is projected to reach US$332 billion by 2025. Frankly plans to leverage its channel partners to expand the Company's global footprint into other adjacent media markets, including such possible areas as eSports and gaming. The combined business will serve over 1,200 broadcasters and look to rapidly expand its customer base in numerous media sectors with Vemba's added capabilities.
Additional Transaction Agreement Details
Under the terms of the Asset Purchase Agreement, the Company will acquire from Vemba Corporation the assets that comprise the Vemba business for a purchase price consisting of cash and approximately 300,000 Frankly common shares and the assumption of certain liabilities. The transaction is subject to customary conditions for a transaction of this nature, including all required third party and shareholder approvals and the approval of the TSX Venture Exchange, and is expected to be completed within the next thirty (30) days.
Frankly Media provides a complete suite of digital solutions for media companies to create, manage, distribute and monetize their content on all platforms maximizing audience engagement and revenue potential. The company is headquartered in New York with offices in Atlanta. For more information, visit www.franklymedia.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice Regarding Forward-Looking Statements
This release includes forward-looking statements regarding Frankly and its respective businesses, including statements with respect to Frankly's expected acquisition and integration of the Vemba business, the potential for enhancement of its products and services, the size of the potential market for its products and services and for increasing its customer base and sales. Forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the parties. Forward looking statements depend on certain assumptions that management deems to be reasonable in the circumstances, but such assumptions may prove to be incorrect and the outcome of the subject of any forward-looking statement cannot be guaranteed. Such assumptions are based on, among other things, ongoing negotiations with customers and current operating performance. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Frankly undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.