Tandberg Acquires SkyStream for $80-M

SOUTHAMPTON, UK, Feb. 9, 2006/Satnews Daily/ — Tandberg Television (Oslo:TAT.OL) announced on Wednesday that it has signed a definitive agreement to acquire SkyStream, the Sunnyvale, CA-based company engaged in IP video delivery solutions.

Under the terms of the agreement, Tandberg Television will acquire privately-held SkyStream for $80 million and Tandberg shares. Subject to a number of standard conditions, the transaction is expected to close in April 2006.

SkyStream employs approximately 100 people across North America and in the UK, China and Korea. Founded in July 1996, SkyStream has delivered 7 years of sequential revenue growth and achieved profitability in Q4 2005. The company posted 2005 revenues of $30.7 million, up 43 percent on 2004, and with a gross margin of 65 percent.

Tandberg said the move brings together two highly respected players in digital video delivery and will extend Tandberg’s position in the professional video compression market. Tandberg said it will expand its technology offering for IPTV and also for the cable, satellite DTH and on-demand markets with a highly complementary product set from SkyStream, the industry’s fastest-growing provider of IP video solutions with over 300 customers worldwide.

SkyStream’s advanced IPTV solutions and impressive market presence in the Telco regional headend business is a natural extension to Tandberg’s award-winning central headend IPTV systems and global Tier 1 customer base, Tandberg said. The combination of the two companies will create a clear global leader in the rapidly expanding IPTV market.

SkyStream's customers include Safeway, Reuters, GlobeCast (a division of France Telecom), EchoStar Communications Corporation, Comcast, BT Broadcast Services, Belgacom, Clear Channel, Convergent Media, Eutelsat, Gilat, New Skies Satellites, ViaSat, Loral Skynet, EMS, Rural Telephone, CCTV, Shanghai Stock Exchange and Telecom Italia.

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