• by Gavin O'Malley  @mp_gavin, December 2, 2008

Expanding its rich media capabilities, online video provider The FeedRoom has completed the acquisition of ClearStory Systems, a digital asset management software provider. Terms of the deal were not disclosed.

The combination of ClearStory's open-architecture DAM platform, ActiveMedia 7.5, with The FeedRoom's 4.0 Enterprise Video Platform will give the company a clear edge in an increasingly competitive marketplace, according to The FeedRoom President and CEO Mark Portu.

"It's a perfect fit," said Portu. "Our customers are looking for additional rich media capabilities, and ClearStory's marketing customers are very interested in video."

ClearStory helps marketing clients manage a range of digital marketing assets including graphics, documents, and multimedia. The company's combined technologies are intended to help marketing and media clients to better integrate, manage and deliver their digital media assets in a single system.

"Video has become a top priority for our customers," said Michael Lam, ClearStory president.

Founded in 1999, FeedRoom now competes against a bevy of competitors, including Brightcove, thePlatform, KIT digital and Magnify.net.

Based in New York, The FeedRoom delivers "software as a service" offerings and related services to clients, including Barnes & Noble, ESPN, Hewlett-Packard, Intel, McGraw-Hill, MetLife, Yum Brands, Coldwell Banker, General Motors, The Pentagon, and The U.S. Marine Corps.

In October, FeedRoom lost its place as the premiere video platform for The NYTimes.com in favor of Brightcove. Portu, for his part, appears to have taken the loss in stride. "The Times made a capital investment in Brightcove years ago, so we knew we were on borrowed time with them."

FeedRoom recently raised $12 million in a round led by NewSpring Capital, and including existing investors BEV Capital and Velocity Equity Partners. To date, the company has raised an estimated $66 million in investment.

While recognizing the uncertainty of the market, Portu said the company is seeking additional expansion through internal development and M&A activity. "Everyone sees consolidation coming next year," Portu said. "We're well-positioned to take advantage of that trend."