Video processing firm RGB Networks announced the acquisition of mobile transcoding vendor Ripcode in an all-stock deal today. Ripcode sells video transcoding appliances that are used for both on demand and streaming video delivered to mobile devices, something that RGB wants to integrate into its own product. The companies did not disclose the price of the acquisition.
RGB makes a carrier-grade box that is designed to deliver video to televisions, PCs, mobile handsets and a range of other connected devices. The product, which RGB calls the Video Multiprocessing Gateway (VMG), works by taking in a video feed and creating multiple versions of it for different devices. To do so, the VMG handles multiple functions, including encoding, transcoding, ad insertion and encryption in real time.
By putting all that functionality into one chassis, RGB simplifies the video workflow, doing away with the need for multiple encoders and other discrete components. Now, the company is looking to improve mobile capabilities of its gateway with the Ripcode purchase. Ripcode sells video transcoding appliances that are used for both on demand and streaming video delivered to mobile devices. As a result, RGB will integrate the Ripcode technology into the VMG, with plans to release product later this year.
Ripcode was bought out in an all-stock deal, with the expectation that RGB Networks will go public next year, according to Streaming Media. RGB is profitable, with more than $150 million in lifetime sales and a valuation of $200 million.
Prior to the acquisition, Ripcode had raised a total of $33 million since being founded in 2005. That includes a $12.5 million funding round raised in January 2009 and led by Granite Ventures, with existing investors Hunt Ventures, El Dorado Ventures, Vesbridge Partners and ATA Ventures. The company has 25 employees and is headquartered in Dallas.
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