Shares in SEEEN plc (AIM:SEEN) rose 18% to 4.75p on Tuesday after the AIM-quoted AI video technology company agreed to acquire MEDIAL, a profitable enterprise video streaming platform used by more than 50 universities and corporate organisations, for a total of up to £1.2 million.
MEDIAL, which trades through Streaming Limited, generated revenue of £0.64 million and an adjusted pre-tax profit of £0.21 million for the year ended 30 April 2025, and carries a net cash position of £0.3 million that will benefit the enlarged group on completion.
SEEEN said the deal is expected to be immediately earnings-accretive and will accelerate its push into the education and corporate training market, where it sees significant opportunity to cross-sell its AI-powered video optimisation tools into MEDIAL's existing customer base.
The combined group would have generated pro forma revenues of more than $6 million and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $0.5 million in 2025, with more than 100 customers, 95% of whom produce recurring or repeat income.
Initial consideration of approximately £1 million will be satisfied through £0.95 million in cash and the issue of one million new shares at 6 pence each, representing a 50% premium to the prevailing share price, with deferred consideration of £0.2 million payable in cash over eight quarters subject to no warranty claims arising.
MEDIAL founder Robert Thomas will join SEEEN's leadership team and work alongside chief executive Adrian Hargrave to drive sales from the combined offering.
SEEEN said it intends to target the corporate e-learning market, which it expects to exceed $300 billion by 2030, by packaging video-based training products for trades and services companies, with an initial launch planned alongside American Leak Detection, a US provider of infrastructure monitoring services.
Completion is expected on or before 30 April.