ARRIS launched a bid to acquire TANDBERG Television, a leading supplier of digital video and IPTV hardware, software and services for approximately US$1.2 billion in cash and newly issued ARRIS shares. ARRIS is a leading supplier of VoIP, data broadband network equipment, including cable modem termination systems (CMTS), and consumer premises devices. ARRIS has a strong North American presence among cable operators, while TANDBERG TV offers deep expertise in encoding technologies, along with an international list of customers.
ARRIS said the acquisition would give it the depth and scale to prosper in the high growth video content creation, management and distribution markets. The combined company will have a significant global presence with over 1600 employees and 2000+ customers in more than 100 countries.
Jan Christian Opsahl, Chairman of TANDBERG Television since 1988, has
agreed to join the board of ARRIS upon completion of the transaction.
"The combination of ARRIS and TANDBERG Television is positive for the digital media industry and a truly exceptional opportunity for both companies," said Bob Stanzione, Chairman & CEO of ARRIS. "By bringing together these two market leaders we are able to expand on our vision to be the global leader in the provision of digital IP infrastructure and to enable voice, video and data to be delivered over integrated broadband networks from the content provider to the head-end to the home."
The Board of Directors of TANDBERG Television unanimously recommended that the shareholders accept the ARRIS offer.
"The on-going industry consolidation amongst our key customer base creates a demand for companies that can offer an increasing scale and scope of supply on a global basis. The combination of ARRIS and TANDBERG Television clearly creates that market leading supplier of voice, video and data solutions," said Jan Christian Opsahl, Chairman of TANDBERG Television.
http://www.arrisi.com
http://www.tandbergtv.com/
- In September 2006, TANDBERG Television introduced its next-generation high definition (HD) and standard definition (SD) MPEG-4 AVC encoding solutions claiming bandwidth improvements of up to 50% over currently deployed MPEG-4 AVC units. TANDBERG's new encoders enable HDTV services to be delivered at data rates below 6 Mbps, with similar improvements to SD services, and are designed to enable operators to deliver HD and SD multi-channel and single channel services across cable, satellite, telco and terrestrial networks.
- In February 2006, TANDBERG Television acquired SkyStream, a supplier of IP video delivery solutions, for $80 million in cash and TANDBERG Television shares. The transaction is expected to close in April 2006. SkyStream's product line included its high density Mediaplex-20 and iPlex switched digital video headends for MPEG-2/MPEG-4 AVC encoding and transcoding. The platforms are used by IPTV operators in Asia, Europe and the US.
In August 2006, TANDBERG Television acquired Zetools, a Los Angeles-based developer of software that enables the delivery of digital video services over the Internet. Financial terms were not disclosed. Zetools automates the formatting, management, programming and publishing of interactive and on-demand Internet video with a focus on ease-of-use.
