Local media technology firm Ross Video continues to grow through acquisitions after purchasing a pair of companies, including Ottawa-based Coveloz Technologies.
It’s the latest purchase for the firm, whose technology generates on-screen graphics for clients such as Super Bowl broadcasters and helps advertisers know what people are watching. Over the last three years, Ross Video has acquired firms in Virginia, Florida and Wisconsin, among others.
On Thursday, Ross Video announced it was making a purchase closer to home with the acquisition of Coveloz, which makes media networking and processing products. In a statement, Ross Video CEO David Ross said the newly acquired firm would continue to operate independently.
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“Coveloz has some great core technology and an amazing vision for the IP future. As we’ve been working with their team implementing technology on our new platforms, we’ve been impressed,” he said.
The company says that the acquisition will allow Coveloz to continue growing with the backing of a larger firm.
Ross also announced the acquisition of California-based Abekas, a developer of video server and replay technology.
“Abekas’ product line fits perfectly into our portfolio and our live production focus,” Mr. Ross said. “Replay especially, is a component we needed to round out our solution set.”
The company, which is privately held, did not disclose the terms of either transaction.
Mr. Ross discussed his acquisition strategy in a 2015 interview with OBJ. The target company must be a fit with Ross Video’s corporate culture, he said at the time, and must generate no more than 10 per cent of Ross Video’s revenues. The latter criteria mitigates risk in case a deal sours and eliminates “all sorts of political problems” that often crop up when big companies merge.
“What I like to do is buy relatively small gems that have great potential that would benefit from the Ross brand and integrating with the Ross suite of products,” he said last year. “If you were to buy a (market) leader, what do you get out of that? You get maybe the efficiencies of saving some sales and accounting. It’s not the same thing as seeing fantastic growth of a small company.”
Ross Video operates an 80,000-square-foot equipment manufacturing facility in Iroquois and also has a large presence in Ottawa.
It had approximately 600 employees with sales “well into nine figures” as of last year.