Carlyle Acquires LiveU for Over $400 Million
LiveU Acquisition Confirmed by Carlyle
Confirmation has arrived regarding the sale of LiveU – a leading developer of livestreaming solutions utilized by approximately 3,000 prominent media organizations – following initial reports yesterday. Both LiveU and Carlyle have officially announced the completion of the transaction.
Seller and Deal Details
The current owner, Francisco Partners, a private equity firm, initially acquired LiveU two years prior for $200 million. While the precise financial terms of this recent sale remain undisclosed, reliable sources indicate a valuation exceeding $400 million.
Carlyle Europe Technology Partners (CETP) IV will provide the equity for this investment, focusing on technology companies in both Europe and the United States. This marks Carlyle’s inaugural technology acquisition within Israel, where LiveU is headquartered.
Factors Driving Valuation Growth
LiveU’s valuation has doubled within a two-year timeframe, largely attributable to the evolving media landscape. Video content is now central to information consumption, and its importance continues to increase. Consequently, companies innovating in video capture and transmission are highly sought after.
The recent pandemic has further bolstered the video market. LiveU’s technology will be instrumental in recording and broadcasting numerous hours of coverage from the Tokyo Summer Games, which will heavily rely on live video due to limited live audiences.
Strategic Expansion and Integration
This growth is also a result of LiveU’s proactive strategies. The company recently acquired Garland Partners, its channel partner in the U.K., to foster more direct client relationships and expand its regional business.
LiveU has developed a comprehensive, vertically integrated system. This includes cameras and recording equipment, encoding technology for transmission, and hardware for receiving and utilizing the footage.
Data compression software is a key component of their offering, enabling high-quality video transmission via a combination of cellular, satellite, and other network types.
System Flexibility and Customer Base
The system’s adaptability allows for modular or complete deployments. This flexibility and reliability have attracted over 3,000 media organizations as clients, who utilize it for major events – including sports and breaking news – as well as routine video coverage.
Carlyle’s Long-Term Vision
While Francisco Partners achieved a swift return on its investment, Carlyle appears to have more extensive strategic objectives. The firm stated its intention to leverage its expertise in the media tech sector to support LiveU’s expansion.
Carlyle already holds investments in related companies such as Disguise, NEP, The Foundry, Vubiquity, BTI Studios, and The Mill, suggesting a broader consolidation strategy.
“Carlyle will actively pursue further consolidation of LiveU’s market position through mergers and acquisitions, alongside organic growth, capitalizing on the increasing demand for high-quality live video transmission,” LiveU stated. This will also involve strengthening media partnerships.
The rollout of 5G technology is expected to accelerate this trend.
Statements from Leadership
Samuel Wasserman, CEO and co-founder of LiveU, expressed enthusiasm about the partnership: “We’re excited to partner with Carlyle as we look to expand LiveU’s global footprint and service offering. This is a significant milestone for LiveU and represents a strong vote of confidence in our business.”
He further acknowledged the support of Francisco Partners and IGP Capital over the past few years.
Michael Wand, MD and co-head of the CETP advisory team at Carlyle, added: “Carlyle has a history of investing in fast-growing and highly innovative, disruptive media technology companies and is truly excited to partner with LiveU which is at the forefront of a rapidly growing market.”
Wand highlighted the potential for growth through expansion into new areas, strategic acquisitions, and strengthening relationships with media broadcasters, particularly in live sports. He emphasized the increasing demand for real-time video, the cost-effectiveness of bonded cellular technology, and the opportunity to extend live broadcasting to underserved areas like amateur sports.
