Telestream announced today that it will merge Tektronix Video into Telestream.
Financial details of the transaction were not disclosed, but this transaction is not a typical M&A event.
Under the terms of the deal Tektronix parent company Fortive and PE firm Genstar Capital, which acquired Telestream from Thoma-Bravo in January 2015, have entered into a “co-ownership arrangement” of the combined and enlarged company.
Presumably this co-ownership arrangement lets Genstar spread its risk, while allowing Fortive to participate in any potential future upside.
This is not dissimilar to the deal struck between Ericsson and One Equity Partners, where 51% of what’s now MediaKind was acquired by One Equity Partners, with Ericsson retaining the remaining 49 percent.
At this time, the ownership percentage in the combined company held by Genstar and Fortive remains unknown.
The tie-up with Tektronix is Telestream’s third broadcast test and measurement-related M&A deal.
The company acquired Boston-based IneqQuest in March 2017. Previously, Telestream acquired UK-based VidCheck in September 2016.
At this time, it is not clear how the enlarged company will rationalize the Telestream and Tektronix brands. Tektronix, which was founded in 1946, how a long-established reputation for excellence in the broadcast market, so it stands to reason that Telestream would want to keep the Tek brand alive.
When it acquired IneoQuest, Telestream used the IneoQuest name as a product brand for a short time before rebranding the products as “Telestream IQ Solutions.”
Telestream CEO Scott Puopolo, who will serve as the CEO of the combined company, said “Combining Tektronix Video with Telestream brings more extensive sales reach and a very strong presence in additional countries and markets, as well as extensive channel relationships through which we can sell our entire portfolio. Further, Tektronix Video has industry leading product management and R&D skills that can augment our talent and extend Telestream’s capacity for innovation. Finally, with engineering talent in both Beaverton and Bangalore India, we will benefit from significant additional resources to both innovate and deliver to the needs of our customers.”
Press Release: Tektronix Video Merges Into Telestream
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