Cisco Systems agreed to acquire privately-held Arroyo Video Solutions, Inc., a developer of on-demand video servers, for approximately $92 million in cash.
Cisco said it plans to integrate the Arroyo platform into the Cisco IP-NGN (Next Generation Network) architectural framework "to help enable carriers to accelerate the creation and distribution of network delivered entertainment, interactive media and advertising services across the growing portfolio of televisions, personal computers, mobile handsets and emerging media capable devices in our increasingly connected lives."
The Arroyo team includes Drew Major, an original founder of Novell and industry icon recognized for his expertise in network operating systems, distributed systems and content delivery networking (CDN). Also joining is Paul Sherer, former chief technology officer at 3Com and key contributor to a broad portfolio of networking patents and technologies. Arroyo was founded in 2002 and has 44 employees based in California and Utah.
Under the terms of the agreement, Cisco will pay The a
Upon close of the transaction the Arroyo team and product portfolio will be integrated into the Cisco Cable & Video Initiatives Group, within the Service Provider organization led by Volpi.
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- Arroyo's OnDemand video networking software allows the network operator to geographically distribute the functions of ingest, storage and streaming anywhere in the network and manage them as a cohesive unit. Multiple, distributed industry-standard servers can work together as one centrally managed virtual server. Arroyo also provides offers a workflow-based VOD management system.
- Arroyo also offers a network personal video recorder (nPVR) solution that enables operators to use existing set-top boxes. The system provides the ability to simultaneously ingest 4,000 channels of 3.75 Mbps MPEG-2 video in one rack of industry standard servers - 100 channels of ingest for every 1.75 inches of rack space.
- Arroyo is headed by Rick DeGabrielle (CEO), who previously was Vice President of Sales and Business Development for Catena Networks (acquired by Ciena for $500 million). Prior to Catena, Rick held executive positions at Network Equipment Technologies, AccessLAN, and Cascade Communications.
- Arroyo raised more than $25 million in venture funding, including a $12 million Series B round in March 2005. The round was led by Matrix Partners, a top venture capital firm, with participation by all existing investors including: DCM - Doll Capital Management, Foundation Capital, Time Warner Investments and Comcast Interactive Capital.
Cisco's Recent Acquisitions
| Arroyo Video Solutions | VOD servers | $92 million | Aug 06 |
| Meetinghouse Data Communications | client-side 802.1X supplicant security software | $43.7 million | Jul 06 |
| Metreos Corp | IP communication application development and management environments | $28 million | Jun 06 |
| Audium Corp | VoiceXML speech self-service application development and management environments | $19.8 million | Jun 06 |
| SyPixx | video surveillance software and hardware | $51 million | Mar 06 |
More Cisco acquisitions:
http://www.convergedigest.com/mergers/mergersCisco.asp
