Imax Buys Video Optimization Software Company for $18.5M

Imax bought video optimization company Ssimwave for $18.5 million in cash and $2.5 million in stock, plus an additional earnout consideration of $4 million based on financial objectives, it announced Thursday. Ssimwave’s 30-person engineering team “has mapped the human visual system to produce one of the most accurate measures of perceptual quality,” driven by its AI-based software that enhances video streams and files in real time, Imax said. With the rise in demand for higher resolution video for 4K, 8K, virtual and augmented reality, and gaming, filmmakers and creators are looking for systems that ensure the fidelity and quality of their work on screen, Imax said. Near term, Imax will work with Ssimwave to grow its business and product offerings, including internationally; long term, Imax’s technology and post-production teams will work with Ssimwave’s engineers to develop solutions for “Imax-quality video experiences” globally, it said. The acquisition builds on Imax Enhanced, the company’s platform for streaming entertainment. Rosenblatt Securities analyst Steven Frankel applauded the acquisition in a Thursday investor note, saying it "expands the company’s reach, building deeper relationships with potential streaming partners and provides solutions that can help both existing efforts in the legacy business and the nascent live events business."