Pompano Beach, Fla. - Onstream Media, a distributor of live and on-demand Internet video, announced on Friday that it has agreed to acquire Narrowstep, a provider of Internet TV and IPTV services.

Under the terms, Narrowstep shareholders will receive 11.1 million shares of Onstream, plus another 8.9 million shares if Narrowstep's business meets certain performance targets.

The deal is expected to close within the next three months.

Both companies have also agreed to a restructuring plan to reduce or eliminate costs related to Narrowstep's facility leases and other expenses.

"With the addition of Narrowstep, we now have a full suite of enabling technologies to address this emerging market requirement," said Randy Selman, president and CEO of Onstream.

"We believe that the combination of Narrowstep's automated IPTV platform and Onstream's advanced capabilities in meta-tagging, optimization, indexing and classification will solidify our leadership position within the industry making Onstream even more attractive to a wide-range of potential partners, including telecom, satellite and cable companies, and hardware vendors."

Related Links:
http://snipurl.com/2bm13

http://www.onstreammedia.com

http://www.narrowstep.com