The undisputed worldwide leader in cloud-computing infrastructure, Amazon Web Services Inc. (AWS) began ramping up M&A in 2015 with the pivotal $500 million purchase of video technology company Elemental Technologies Inc., which closed in October. Owned by Amazon Inc. (Nasdaq: AMZN), AWS has already announced one deal in 2016 and is expected to continue acquiring.
Elemental develops software that enables companies to re-format video produced for traditional broadcast networks so that it can be distributed over the Internet on PCs, smartphones, tablets and TV. Based in Portland, Oregon, Elemental boasts more than 700 media companies as customers and provides the technology behind over-the-top TV (OTT) applications, including the BBC’s iPlayer, CNNGo, ESPN ScoreCenter, HBO GO, MSNBC Shift, Sky Go and Sky Now. Before its purchase by AWS, Elemental had raised about $44 million in venture capital funding from firms including General Catalyst Partners, Luminari Capital, Norwest Venture Partners, Steamboat Ventures, Telstra Ventures and Voyage Capital.