Content security firm Verimatrix has acquired Genius Digital’s Mirimon engineering team, technology, and associated IP. The Mirimon stack comprises a set of technologies that allow service providers to harvest data from a range of end-user devices, and from operator-managed consumer premises equipment (CPE) in particular. Verimatrix’s Verspective analytics proposition will integrate the technology.
The acquisition’s value is unknown. However, given that Genius Digital generated turnover of roughly USD 1.5m in 2015, IHS Markit believes that the deal was modest in size.
From a product standpoint, the Mirimon acquisition is eminently sensible. The Verspective solution sits atop three core functionalities – it provides a secure, multi-source data warehouse; it collects data from servers and end-devices that run Verimatrix’s VCAS content security client; it secures the exchange of data within and across different levels of a service provider’s data ecosystem. The Mirimon technology directly benefits Verspective’s ability to extract data from managed CPE, and process this data in real-time.
Commercially, the acquisition comes as little surprise. Since Verspective’s unveiling in early 2016, the two companies have enjoyed a close partnership, and contributed jointly to the solution’s wider capability set. Given the centrality of Genius Digital’s technology to the Verspective ecosystem, the acquisition partially resembles a cash infusion aimed to support a key partner’s technical R&D.
Strategically however, the acquisition’s value is less clear. It is important to understand what Mirimon does and does not bring to Verspective.
The Verspective solution represents Verimatrix’s manifestly playing to its strengths. Given the firm’s longstanding expertise in video security, and its footprint across millions of end-devices, Verimatrix’s foray into the analytics space revolves around secure data extraction, secure data storage, and secure data exchange. Mirimon complements the Verspective portfolio easily and naturally.
What the Mirimon acquisition doesn’t do is address two potential chinks in Verspective’s armor. While Verspective can collect, aggregate, and store consumption and audience data, the solution doesn’t expressly provide a content-centric dashboard of library performance, asset consumption, and pricing effects. Second, the solution doesn’t include a proprietary, logical layer that allows service providers to combine consumption, household, and demographic data, and predict churn antecedents, identify upsell opportunities, or suggest new bundles and campaigns.
Verimatrix’s M&A strategy remains focused on security and aggregation; the firm has yet to allocate spend toward acquiring proprietary data processing, or predictive BI technology. While the Verspective solution offers analytical tools through its partner ecosystem, the solution consequently remains vulnerable to external M&A and technology capture. IHS Markit believes proprietary data processing and predictive logic to be a chokepoint in the service-provider analytics industry.