Brightcove To Acquire Unicorn Media; Lifts Q4 Forecast - Quick Facts

(RTTNews) - Brightcove Inc. (BCOV), a provider of cloud services for video, Monday said that it has entered into a definitive agreement to acquire Unicorn Media, a provider of cloud video ad insertion technology, for about $49 million. The company also lifted its fourth-quarter forecast, and issued forecast for fiscal 2014.

Under the deal terms, the purchase price consists of approximately 2.9 million shares of Brightcove stock and approximately $9.0 million of cash used to pay transaction and other expenses of Unicorn Media.

Brightcove said it will rebrand the Unicorn Media product line as Brightcove Once and will continue to develop, operate and support the service. It will also integrate the technology with other Brightcove services.

The company added that Unicorn Media's headquarters in Tempe, Arizona will become the Brightcove Southwest R&D Center, joining similar centers in Boston, San Francisco and Seattle.

Brightcove also announced its preliminary fourth-quarter results, expecting adjusted income from operations to be $1.0 million to $1.3 million, which is above prior guidance of $350,000 to $650,000.

Brightcove also expects revenue to be $29.7 million to $30.0 million, which is above prior guidance of $28.0 million to $28.5 million.

On average, six analysts polled by Thomson Reuters expect revenues of $28.42 million for the quarter. Analysts' estimates typically exclude special items.

Looking ahead for full year 2014, the company expects revenue to be $126 million to $130 million, including $8 million to $9 million of contribution from Unicorn Media. Analysts expect revenues of $125.68 million for fiscal year 2014.

Adjusted loss from operations for the year is expected to be $9 million to $12 million, which includes a loss attributable to Unicorn Media of $11 million to $12 million.