Net Insight sells Sye streaming business

Media vendor Net Insight has announced an agreement to divest its Sye consumer streaming business for SEK 350 million (€33.4 million) to an as-yet unnamed Fortune 500 company.

The move effectively sees Net Insight exit the increasingly crowded consumer streaming sector at a lucrative moment. In a statement, the company said that considering its stature as “a small B2B company” the size of the offer received made the deal compelling to its stakeholders. 

Gunilla Fransson, chairman of the board of Net Insight said: “The fact that a Fortune 500 company wants to acquire Net Insight’s internally developed consumer streaming solution is a proof point of our ability to develop world-class video transport solutions. Sye has accelerated Net Insight’s transformation to an advanced media technology company and has added invaluable competencies that will remain with Net Insight also after the divestment.”

The statement from Net Insight added that the divestment will allow the company to increase focus towards its media transport business.

The divestment will allow Net Insight to increase focus and investments in its core B2B media transport business. Competencies gained while developing and launching Sye, for example related to virtualized software and cloud-based technology, will continue to benefit Net Insight’s Media Networks business area. 

The transaction will present a clean break, and involves divestment of 100% of the shares in a wholly owned Sye business subsidiary. This will see all contracts, including those of about 30 employees and consultants transferred to the buyer. The company said this means that the effects on its overall operations will be limited.

The divestment comes several months after Net Insight announced its intentions to devote more resources to Sye. It said that the company would require a new capital contribution in the autumn, but gave no suggestion that it would entirely sell the Sye business.

In addition to Sye, Net Insight produces core product Nimbra, its media gateway, and scheduling software ScheduALL, which it acquired in 2015.