By Ryan Naraine
New York rich media software firm Interactive Video Technologies (IVT) has struck a deal to acquire the assets of Digital Lava, Inc.
for $700,000 in cash.
Calif.-based Digital Lava, which develops rich mixed media software products for corporate communications and marketing, announced a dissolution and liquidation plan that includes the asset sale to IVT.
In addition to the $700,00 cash payment, IVT would also assume certain liabilities including accounts payable, expenses incurred in the ordinary course of business and certain severance obligations to Digital Lava’s 70 employees.
Digital Lava chief executive Bob Greene said the deal would help the plan to return some semblance of stockholder value. “Given our financial position and inability to secure additional funding, we are pleased to have entered into this agreement with IVT…We expect the integration of the two companies to be seamless.”
For the privately held IVT, which manages rich media Web presentations for live events or video-on-demand, the deal adds a known brand and a potentially valuable client list for its services.
IVT’s customer-base, which includes big names like Home Box Office (HBO), Showtime and Victoria’s Secret, use the company’s services to integrate and synchronize content to a Web site. Rich media content typically includes graphics, slides, polling and chat applications.
IVT CEO Mark Lieberman said,. “We feel that the combination of our two companies will raise the bar for the entire video communications marketplace — both now and in the long term as we prepare to rollout our newest rich media software platform later this fall.”
The company’s core product – MuSE – is a Web-based platform for managing interactive rich media Web pages for live events and video-on-demand.
Earlier this year, IVT closed a $10 million financing round. Investors include Sun Microsystems, Tudor Ventures, Intel, Allen & Co., and PS Capital/Millennium Technology Ventures.