Net Insight Divests Sye Streaming Business to Amazon
Net Insight has closed the transaction to divest Sye, its consumer streaming business, to Amazon for approximately $37.2 million in cash.
As announced on December 17, 2019, Net Insight signed an agreement to divest the Streaming Solution business area (Sye). The Sye technology solves fundamental issues for B2C streaming distribution and Amazon has already deployed Sye in some of its live streaming services as a customer.
With the close of this transaction, 100% of the shares in the wholly-owned Sye business subsidiary, which holds all relevant IPRs, contracts and about 30 employees and consultants have been transferred to Amazon. The estimated net profit of the transaction will be some SEK 200 million in the first quarter of 2020.
The divestment allows Net Insight to increase focus and investments in its core B2B Media Networks business area and competencies gained while developing and launching Sye, for example, related to virtualized software and cloud-based technology, will continue to benefit the company. Among other things, the increased focus and investments involve accelerated efforts to drive growth in attractive market segments like Internet-based transport, remote/distributed production and cloud networking solutions.
Invitation to conference call with web presentation
Following the transaction, Net Insight will hold a webcast teleconference on January 9, 2020 at 9:00 ET. Please visit the Net Insight website for dial-in details.
The conference call is mainly targeted to analysts, institutional investors, and media.