SeaChange Acquires Digital Video Arts

Maynard, MA-based SeaChange International, Inc. has acquired custom software developer Digital Video Arts Ltd. (Dresher, PA) for 330,000 shares of common stock. SeaChange finalized the acquisition on December 30, 1999; based on that day's closing price of $32.75 per share, the deal is worth approximately $10.8 million.

The companies will account for the acquisition as a pooling of interests. Costs incurred to complete the merger will be reflected in SeaChange's Q4 1999 financial results, to be announced toward the end of the month. Now operating as a wholly owned subsidiary of SeaChange, Digital will retain its name and continue operations in Dresher.

Recently, the companies began to integrate SeaChange's video server-based interactive television system (ITV) with the Digital video-on-demand (VOD) application, a standards-based VOD client application for digital set-top boxes.

Edited by Meredith Lockard