Genstar Capital Announces Agreement to Acquire Telestream

Opportunities Seen for New Products, International Expansion, and Add-on Acquisitions

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Jan 07, 2015, 12:00 ET

SAN FRANCISCO, Jan. 7, 2015 /PRNewswire/ -- Genstar Capital, a leading middle market private equity firm that focuses on investments in targeted segments of the financial services, software, industrial technology, and healthcare industries, today announced the signing of a definitive agreement to acquire Telestream, a world-class provider of live and on-demand digital video tools and workflow solutions.

Telestream provides award winning digital video software and workflow solutions that allow consumers and businesses to transform video content on the desktop and across the enterprise. Many of the world's most demanding media and entertainment companies, as well as users in a broad range of business environments, rely on Telestream products to streamline operations, reach broader audiences and generate more revenue from their media. Telestream products span the entire digital media lifecycle, including media ingest, post production, transcoding; captioning, multiplatform delivery and live streaming; as well as automation and orchestration of the entire workflow.

"Genstar has been following Telestream closely and this acquisition is consistent with our strategy of investing in vertical market software companies," said Eli P. Weiss, a Managing Director of Genstar. Telestream is a leader in its market that has posted profitable growth since its founding. As even more content is generated and viewed on more devices, we believe the company will continue its demonstrated growth trajectory, and we will support Telestream's experienced and successful management team to expand organic growth via new product releases and pursue add-on acquisitions."

Dan Castles, CEO of Telestream, said, "We have had a long history of growth and profitability over the past 17 years. We are the undisputed leader in file-based transcoding and workflow software, yet there remain multiple avenues for continued growth in the U.S. and internationally. We have been very impressed with the Genstar team through our preliminary planning and diligence and believe their expertise in the software sector will be instrumental to us as we partner to invest in existing and new products, develop new customer verticals, and expand through additional M&A activity.

Ropes & Gray served as legal counsel to Genstar and Silverwood Partners served as financial advisor.

About Telestream
Headquartered in Nevada City, CA, Telestream provides world-class live and on-demand digital video tools and workflow solutions that allow consumers and businesses to transform video on the desktop and across the enterprise. Many of the world's most demanding media and entertainment companies as well as a growing number of users in a broad range of business environments, rely on Telestream products to streamline operations, reach broader audiences and generate more revenue from their media. Telestream products span the entire digital media lifecycle, including video capture and ingest; live and on-demand encoding and transcoding; captioning; playback and inspection, delivery, and live streaming; as well as automation and orchestration of the entire workflow. For more information, visit www.telestream.net.

About Genstar Capital, LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the financial services, software, industrial technology, and healthcare industries.

Contact: Chris Tofalli
Chris Tofalli Public Relations
914-834-4334

SOURCE Genstar Capital