Next Step in ARRIS IP Video Evolution
ARRIS Press Release via StimulatingBroadband.com 09/23/09 - Suwanee, GA - ARRIS Group Inc. (Nasdaq: ARRS) announced yesterday that it has agreed to purchase the assets of Digeo, Inc., including its intellectual property portfolio, for a cash purchase price of approximately $20 million.
The Digeo acquisition, along with the recently announced acquisition of EG Technology (EGT), provides ARRIS with substantial technical expertise in video networking and an innovative multimedia services delivery platform.
The engineering talent and intellectual property acquired as part of these transactions will be combined with ARRIS’ internal development efforts to accelerate the introduction of next-generation IP-based consumer video products and services. These new products will allow the Company’s customers to cost effectively integrate and distribute new forms of personalized multimedia content throughout the home.
ARRIS will continue to develop and market the current line of Digeo Digital Video Recorder (DVR) products, including Digeo’s Moxi Cable DVR and consumer HD DVR with its Emmy® award winning user interface. Moxi customers will continue to enjoy uninterrupted service and updates. “
"Several years ago we laid out a strategy to establish ARRIS as a leader in video networking,” said Bob Stanzione, ARRIS Chairman and CEO. “Our strategy includes both organic development and strategic acquisitions. The Digeo acquisition, along with our acquisition of EGT last month, has enhanced our ability to aggressively pursue end to end video delivery initiatives.”
As a result of the Digeo transaction ARRIS will gain approximately 75 employees located in Kirkland, Washington. The addition of the Digeo engineering team will raise the Company’s research and development investment by approximately $3M per quarter. In addition to a highly talented work force and award-winning products and technology, ARRIS will acquire an extensive intellectual property portfolio in technologies including Digital Video Recording, Home Networking, E-Commerce, and Multimedia.
“As the global leader in broadband technology for the cable industry, ARRIS delivers the market position necessary to take the Moxi vision to the next level,” Said Greg Gudorf, Digeo CEO.
”ARRIS recognizes the value of adding Digeo’s highly-innovative technology to its portfolio, allowing the Company to integrate the Moxi line of products and services as core to its expansion into the digital home. Further, ARRIS recognizes the value Digeo’s highly-talented people bring to the equation. I am extremely pleased that the Digeo team will continue to drive the evolution of the Moxi platform.” The transaction is expected to close early in the fourth quarter of 2009.
Conference Call and Webcast An audio replay of yesterday's confer3ecne call announcing the acquisition is available via ARRIS Investor Relations.
ARRIS is a global communications technology company specializing in the design, engineering and supply of technology supporting triple- and quad-play broadband services for residential and business customers around the world. The company supplies broadband operators with the tools and platforms they need to deliver, reliable telephony, demand driven video, next-generation advertising and high-speed data services. ARRIS products expand and help grow network capacity with access and outside plant construction equipment, reliably deliver voice, video and data services and assure optimal service delivery for end customers.
Headquartered in Suwanee, Georgia, USA, ARRIS has R&D centers in Suwanee, Chicago, IL, Beaverton OR, Wallingford CT, State College, PA, Waltham, MA, Cork, Ireland and Shenzhen, China, and operates support and sales offices throughout the world.
About Digeo Digeo, Inc., a Paul Allen-backed company, provides premium home entertainment products including digital video recorders (DVR). The company's mission is to enable the best consumer experience in high-definition entertainment for the connected home. The company's flagship product - the Moxi® HD DVR with Emmy® award-winning menu and features - serves as the hub for whole-home distribution of digital entertainment.
The Moxi platform empowers consumers to discover, experience and share high definition media, including TV, movies, music, games, photographs and video. The Moxi HD DVR is available directly to consumers at moxi.com or via Amazon at www.amazon.com/electronics. Moxi products are also available through cable providers, with nearly a half million units deployed to U.S. households to date. Digeo continues to innovate and provide Moxi solutions to the cable and IPTV industry, including the licensing of the Moxi platform and services to consumer electronics manufacturers and service providers.