The Union has some details:
Telestream Inc., a global provider of live and on-demand digital video tools and workflow solutions located in Nevada City, announced Wednesday that Bay Area private equity investment firm Genstar Capital has entered into a definitive purchasing agreement.
“Genstar’s mid-market focus and deep expertise in the software industry will enable Telestream to further accelerate our growth,” Telestream CEO and co-founder Dan Castles said. “Over the past several years, Telestream has experienced its most significant growth. We look forward to our new partnership with Genstar as we increase our investment in existing products, accelerate our reach into new customer verticals, and fuel our next phase of development through additional (mergers and acquisitions.)”
While this move is good for Telestream, it may not be good for the community long term. If you recall the acquisition of Grass Valley by an Investment Group, the company has declined, and is now part of another company that is consolidating manufacturing outside of Nevada County. The Grass Valley buyout by an investment firm was not a positive for the local economy.
Telestream has struggle to grow locally, unable to acquired engineering staff they needed to grow. They made some acquisitions and started an expansion operation in Emeryville, hoping to hires some younger engineers with new ideas and skills. Rumor is that the Emeryville experiment was not highly succesfull. A disaster said, one engineer. Locally Telestream was having problems hiring engineers experienced in writing C++ code. (C++ programers are not going extinct, just hard to find those willing to move to rural Nevada County and leave the good life of San Francisco, San Diego, Portland or Seattle behind.)
While the Telestream HQ may remain in Nevada City, it is highly likely that expansion will be done elsewhere, where there is a ready pool of engineering and software developers. Since that pool does not exist in Nevada County, Telestream will have to seek the needed talent else where, perhaps through acquisition. Only time will tell.