Myrio, a Bothell-based company developing software to deliver video to the home, said yesterday it was purchased by Siemens, the global...
Myrio, a Bothell-based company developing software to deliver video to the home, said yesterday it was purchased by Siemens, the global electronics company.
Myrio Chief Executive Chris Coles said the merger follows a three-year relationship with Siemens, which has been using its software in set-top television boxes it manufactures and markets.
Although Coles declined to reveal the amount, he said the German company paid cash for the privately held company, which had raised $58 million over the past 10 years.
“The venture capitalists are pleased with the outcome, enough to endorse the deal,” he said. Myrio’s investors included Ridgewood Capital, NeoCarta Ventures, Seattle-based Alexander Hutton Venture Partners and Siemens Venture Capital.
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Under the agreement, Myrio will be a wholly owned subsidiary of Siemens and remain in Bothell. As part of the deal, Myrio plans to hire about 20 more employees by year-end. Myrio now has about 80 employees and about 40 more contractors offshore. No layoffs are expected.
Coles said Myrio will be able to take advantage of the fast-growing market opportunity as more service providers become interested in the broadband video market.
Telecommunication companies are trying to bring in more revenue from DSL, and cable providers are trying to figure out how to deliver personalized content to every home, a difficult task since cable was originally designed for broadcasting.
“The market is accelerating quickly and getting global coverage is expensive for the venture capitalists to fund,” he said.
Coles said the other advantage is that many of Myrio’s potential customers wanted to deal with a larger supplier, not a small, private company.
Siemens is “the natural one to party with,” he said.
Myrio’s next priorities include integrating the two companies, instituting a sound business plan and using Siemens resources to ramp up quickly. Down the road, it may also look at sending its software to wireless carriers for streaming video to the handset.
“Siemens has a very vibrant mobile business. As they look at a solution set, across wired and wireless, streamed video is one potential application,” Coles said.
Tricia Duryee: 206-464-3283 or email@example.com