NDS Buys Internet-Video Startup for $11.3M
By Todd Spangler -- Multichannel News, 8/7/2007 5:29:00 AM
NDS Group said Tuesday that it will acquire CastUp, an Israeli startup that provides software for managing Internet-video production and distribution, for $11.3 million in cash plus additional payments to employees and senior management.
CastUp, founded in 1999, will give NDS “access to technologies which will help its current pay-TV customers expand their broadband video distribution services,” according to the company’s announcement. NDS expects to use CastUp’s technology to develop enhanced services and applications for broadband-enabled set-top boxes.
“We believe that NDS’ market-leading experience in securely delivering digital content, and our global presence will combine with CastUp’s proven technology to allow us to continue to enhance the businesses of our media and entertainment customers,” NDS chairman and CEO Abe Peled said in a prepared statement.
NDS said it expects the deal to be completed by the end of September.
Tel Aviv-based CastUp will continue to operate as a separate unit within NDS with its current management team. CastUp’s customers include TV and media companies in Israel as well as Israeli subsidiaries of U.S. companies like MTV Networks, Blockbuster, Hewlett Packard and Amdocs.
Also Tuesday, NDS announced results for the fiscal year ended June 30. Total revenue was $709.5 million, up 18% compared with the previous fiscal year. Net income for fiscal 2007 was $135.7 million, an increase of 34% from $101.0 million a year ago.
NDS, which sells interactive-TV software and conditional-access technologies, is a majority-owned subsidiary of News Corp.
In a deal of similar size, last month Harmonic announced it would buy Rhozet, a developer of video-transcoding software for Internet and mobile applications, for $15.5 million in cash and stock.
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