Carlyle to Acquire LiveU for Over $400M - Deal Report
LiveU Acquisition by Carlyle: A Deep Dive
The landscape of content delivery is currently dominated by streaming technology, and a significant development has occurred within this sphere. LiveU, a company specializing in hardware and software solutions for livestreaming and broadcasting video, is set to be acquired by the private equity firm Carlyle.
Deal Details and Background
Multiple sources confirm that the acquisition value exceeds $400 million. LiveU’s technology is currently utilized by over 3,000 major media organizations globally. The company, headquartered in Israel, had previously been the subject of reports in local press regarding the potential deal.
The acquisition is reportedly nearing completion, with a potential announcement expected imminently. Representatives from LiveU declined to provide comment, while Carlyle has yet to respond to inquiries.
Rapid Valuation Growth
This marks the second change in ownership for LiveU within a relatively short timeframe. The company was previously acquired by Francisco Partners, another private equity firm, for $200 million just two years ago.
The substantial increase in valuation – more than doubling in 25 months – can be attributed, in part, to the escalating demand for video content across all platforms.
The Rise of Video Consumption
Traditionally, live video was primarily accessed through television broadcasts. However, the availability of moving pictures has expanded dramatically.
Livestreamed and on-demand video is now readily available on a multitude of apps and websites, accessible via TVs, smartphones, tablets, and computers. It has become the dominant form of both information and entertainment, accounting for over 80% of all internet protocol (IP) traffic.
Strategic Importance of LiveU’s Technology
Consequently, companies that streamline the capture and delivery of high-quality video are attracting significant attention. LiveU’s solutions have been employed in numerous high-profile events, including major tennis championships and significant legal proceedings like the Derek Chauvin trial.
Growth Through Acquisition
LiveU has also actively pursued its own growth strategy. Earlier this year, the company acquired Garland Partners, its channel partner in the U.K., for an undisclosed amount. This acquisition aimed to strengthen its customer relationships within the region.
Sources indicate that this consolidation played a role in both attracting acquisition interest and increasing the company’s overall valuation.
Carlyle’s Investment Activity
While the presence of other potential bidders remains unclear, Carlyle has demonstrated a pattern of active investment in growth-stage companies. The past year has seen a surge in funding, driven by shifts in consumer and business behavior following the COVID-19 pandemic.
Recent European Investments
Carlyle’s recent European acquisitions include 1e, a hybrid working startup, valued at $270 million, and gaming company Jagex, acquired for approximately $530 million. They have also made a $200 million investment in Kakao Mobility, a South Korean mobility-as-a-service startup.
The LiveU deal represents Carlyle’s first investment in Israel.
Israel’s Thriving Startup Ecosystem
Israel has experienced substantial investment activity. Avihai Michaeli, a Tel Aviv-based investment banker, estimates that Israeli startups collectively raised $11 billion in the first half of 2021, increasing to $12 billion to date.
Private equity firms frequently invest in Israeli companies with the intention of enhancing their value and subsequently selling them for a profit. Francisco Partners’ acquisition of MyHeritage for around $600 million in February serves as another example.
Further updates will be provided as more information becomes available.
