Accordent Buyout Provides Exit for San Diego’s TVC Capital
San Diego-based TVC Capital, a small private equity firm focused on software investments, realized a gain in Pleasanton, CA-based Polycom’s (NASDAQ: PLCM) $50 million cash acquisition of El Segundo, CA-based Accordent Technologies.
In a statement today, Pleasanton, CA-based Polycom’s Sudhakar Ramakrishna says, “We believe Accordent has the most elegant video content management solution on the market. This transaction positions Polycom at the forefront of end-to-end video content and management.”
TVC Managing Partner Jeb Spencer, who served as chairman of Accordent’s board, tells me in a note this morning that TVC was Accordent’s lone institutional investor, putting $4 million into the company in 2006. TVC Managing Partner Steve Hamerslag also served on the board.
“TVC takes an activist approach to its software acquisitions and investments and believes in a more bootstrapped approach to growing technology companies,” Spencer says. “Accordent’s small raise of $4 million was enough capital to build the leading US enterprise video content management company.”
Accordent’s technology enables users to capture digital video content whether it is being used to deliver highly scalable live webcasts from a studio, providing automated rich media webcasting from the meeting or classroom, adding a streaming extension to videoconferences or enabling user-generated content from the desktop. The deal expands Polycom’s total available market by $500 million, according to data from market research firm Wainhouse Research. In addition, Wainhouse says the market for this video management segment is projected to generate a compounded annual growth rate of 32 percent through 2014 to $1.2 billion. And as a strategic partner with Microsoft, Accordent deepens Polycom’s integration with Microsoft Lync and Sharepoint.