IMAX acquires local tech company in multi-million dollar deal
A Waterloo based streaming technology company has been acquired by entertainment giant IMAX in a multi-million dollar deal.
SSIMWAVE was founded at the University of Waterloo and creates technology that is used to enhance streaming video quality for millions of subscribers on platforms that include Disney and Paramount Global.
“We’re excited to join IMAX and tap into its global scale and expertise as more streamers turn to SSIMWAVE to ensure the best viewing experiences while reducing bandwidth costs,” Abdul Rehman, CEO and Co-Founder of SSIMWAVE said in a media release.
IMAX said the move marks the expansion of its strategy to drive new, recurring revenue and grow its global leadership in entertainment technology.
“SSIMWAVE is doing revolutionary work at the intersection of human visual perception and image enhancement technology. By putting the power of our global brand behind their award-winning engineering team and product suite, IMAX takes a big step toward a new horizon in our ability to deliver the best images for any creator, across every screen,” said Rich Gelfond, CEO of IMAX, in the release.
According to IMAX, it acquired SSIMWAVE for $18.5 million in cash and $2.5 million in stock. There is additional earn out consideration of $4 million but it is “subject to achieving certain operating performance and financial objectives.”
The acquisition is expected to be complete sometime in 2023.