Arris Buys Assets Of Encoder Vendor EGT For $6.5M
Acquires Patents, Products; Will Hire 20-25 EGT Employees
Todd Spangler -- Multichannel News, 9/1/2009 11:11:00 AM
Arris has acquired certain assets of EG Technology, an encoding-systems vendor, for about $6.5 million, the company announced Tuesday.
Under the terms of the agreement, Arris has obtained EGT's patents and video-processing technology for digital networks, and will employ approximately 20 to 25 of the Atlanta-based company's existing employees.
Arris said the deal complements its existing video offerings, by adding EGT's multifunctional video processors to its portfolio of voice, video and data solutions.
"The addition of EGT's video processing portfolio to the ARRIS portfolio is another step in our evolution towards addressing all of the quad play, three-screen needs of broadband network operators," Jim Lakin, president of Arris's Advanced Technology group said in announcing the deal.
Lakin said the primary benefits from the acquisition will be "the long-term enhanced engineering and solution capabilities" provided by the EGT product portfolio. Arris is based in Suwanee, Ga., near EGT's Atlanta headquarters.
"The EGT team is excited about joining Arris and is looking forward to creating exciting and innovative new edge products enriching the video experience of broadband subscribers," EGT chief operating officer Bill Hogan said in a statement.
Arris said the acquisition is expected to be neutral with respect to earnings per share, excluding amortization of intangibles associated with the deal.
The products acquired by Arris will continue to be marketed under the EGT brand name, and include: the Arris EGT Encore Encoder, Arris EGT Quartet Encoder, Arris EGT VIPr Transcoder and Arris HEMi Edge Encoder.
Investors in privately held EGT www.egtinc.com include Sevin Rosen Funds, Noro-Moseley Partners, H.I.G. Ventures and Gray Ventures.
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