AT&T plans to acquire Quickplay to assist in the launch three new DirecTV services later this year.
The US cable provider said on Monday the firm is purchasing Quickplay, a provider of internet streaming services, from private equity firm Madison Dearborn Partners, according to a press release.
Madison Dearborn acquired a majority stake in Toronto-based Quickplay in 2012 for approximately $100 million.
Financial terms were not disclosed.
Wayne Purboo, founder and CEO of Quickplay commented:
"We've spent more than a decade developing an advanced technology and service platform that can deliver premium video content to any device and over any network. Our solution is highly automated and scalable.
With AT&T, we'll have the resources we need to further scale, grow the business, and continuously enhance that platform."
As part of the deal, AT&T will keep Quickplay's employees and contractors who currently fill over 350 posts.
Quickplay provides on-demand content and live TV coverage through a video platform and has worked with companies including AT&T, Samsung, Sirius XM Radio and Bell in the past.
In order to expand in the United States, the firm purchased Qualcomm's Flo TV network operation center assets in 2011.
Quickplay's platform currently supports AT&T's U-Verse TV Everywhere offering and is set to support three new services, DirecTV Now, DirecTV Mobile and DirecTV Preview, all of which are due to launch this year.
John Stankey, CEO of AT&T said the firm's strategy is to "deliver video content however, whenever and wherever," and so the acquisition of Quickplay and the firm's IP distribution network will propel traffic distribution forward.
The deal is expected to close in mid-2016 and is subject to regulatory approval.
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