SeaChange To Buy Timeline Labs

(RTTNews) - SeaChange International, Inc. (SEAC) said Monday that it has entered into a binding agreement to acquire TLL, LLC which does business as Timeline Labs, a privately-owned, California-based SaaS company that enables local broadcasters, local and national news organizations, cable news channels and other media companies and brands to analyze social media messages in real-time, find and broadcast newsworthy social trends and insights, and measure viewing audience engagement across television, mobile and PC.

Timeline's customers include FOX Television Stations, Sinclair, Media General and Tribune broadcast television stations, as well as online providers like 120Sports.com.

Under the deal, SeaChange will pay $14 million in cash, $8 million in shares of SeaChange stock, and up to an additional $2.5 million in deferred performance-based consideration payable in shares of SeaChange stock. The payment will be based on financial targets for Timeline Labs over a two-year period with payment upon achievement of those metrics occurring annually.

The deal is expected to close on February 2, 2015. All Timeline Labs employees, including Jay Samit CEO and the senior leadership team, will join SeaChange as part of the deal. In addition, SeaChange has agreed to name one person designated by Timeline Labs' equityholders to the SeaChange board of directors, effective as of closing of the deal.

For fiscal 2016, the deal is anticipated to be neutral to SeaChange's adjusted earnings per share.