Stratacache buys Scala in 'giant step forward for digital signage'

Stratacache, a digital signage, media distribution and enterprise video acceleration technologies company, has announced the acquisition of super majority control of fellow industry player Scala.

The Ohio-based business says it foresees significant operational synergies as a result of the deal, will also extending its international footprint. Stratacache said its strong balance sheet and large-scale operations will enhance Scala's competitive edge, while the acquired company's global channels and significant reseller and partner network look set to provide a platform for growth outside the US.

Full terms of the takeover have not been disclosed, but Chris Riegel, CEO of Stratacache, was very complimentary about Scala's role in the global digital signage market.

"Stratacache has great admiration for the Scala platform, the Scala team, the Scala reseller channel and the great history of the company," he said.

"With the Stratacache acquisition of Scala, we believe that we can help Scala and its partner channel realise the runaway success that Stratacache has experienced in the digital signage industry, while significantly improving the depth and breadth of products and services for Scala customers and channel partners worldwide."

Industry analyst, Lyle Bunn, suggested that the move is a positive one for the wider industry, not just the two companies involved in the acquisition.

He said the deal will enable "better service of needs on the global stage" due to the combined strengths of what he described as "preeminent suppliers" that have been major players in the application and advancement of digital place-based media.

"Consolidation has not been expected as a needed feature of and for industry expansion," Bunn explained.

"Sales (for suppliers) and acquisition (for end users) costs have hampered industry growth, detracting from investment on innovations that can significantly advance the use of place-based customer experience and engagement technologies. Technology providers such as IBM, Microsoft, HP, Cisco, Harris Corp, 3M and Google have made splashes in the digital signage lake, but without the significant, long-term implication or impact that large and institutional investors seek."

He added: "This acquisition of Scala by Stratacache is a giant step forward for digital signage and place-based media. More consolidation and expansion can be expected, on the basis that the medium simply makes business and economic sense through the enterprise and value that it delivers."

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