ARRIS Purchases Digeo, Inc. in Cash Transaction
September 22 2009 - 5:41PM
PR Newswire (US)
Next Step in ARRIS IP Video Evolution Conference Call Wednesday,
September 23, 2009, 8:30 AM EDT SUWANEE, Ga., Sept. 22
/PRNewswire-FirstCall/ -- ARRIS Group Inc. (NASDAQ: ARRS) announced
today 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 A conference call and webcast with a presentation and
discussion of this transaction will be held at 8:30am EDT,
September 23, 2009. The conference call will be broadcast live via
the Internet at:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=87823&eventID=
2449527 (To view this web page, copy and paste the URL into your
browser.) Presentation materials for the call will also be
available for viewing at the ARRIS Investor Relations website
(http://www.arrisi.com/). Those wishing to participate in the
conference call via the telephone may dial-in at 800-510-9691,
international 617-614-3453, access code: 25185660. A telephone
replay will be available from 11:30 am EDT on September 23, 2009
through midnight, EDT September 30, 2009 by dialing 888-286-8010,
international 617-801-6888 access code: 11932132. The conference
call replay will also be available via webcast through the ARRIS
Investor Relations website at http://www.arrisi.com/. About ARRIS
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.
Information about ARRIS products and services can be found at
http://www.arrisi.com/. 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(r) HD DVR with Emmy(r) 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 http://www.moxi.com/ or via Amazon at
http://www.amazon.com/moxi. 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. To learn more, please visit
http://www.digeo.com/. Forward-Looking Statements This press
release contains forward-looking statements concerning expectations
with respect to the Digeo and EGT acquisitions, including new
product introductions and expected benefits and synergies, the
expected closing date, and the assumptions relating to the
foregoing. The statements in this presentation that use such words
as "believe," "expect," "intend," "anticipate," "contemplate,"
"estimate," or "plan," or similar expressions also are
forward-looking statements. Actual results may differ materially
from those contained in, or suggested by, any forward-looking
statement. Specific factors that could cause such material
differences include: the difficulty of integrating multiple
businesses, the uncertain economic climate and financial markets
and their impact on our customers' plans and access to capital, and
the demand for their products and services. Other factors include
customer adoption of our technologies, development and marketing of
technology by our competitors, rights to intellectual property and
the current trend toward increasing patent litigation, market
trends and the adoption of industry standards, and consolidations
within the telecommunications industry of both the customer and
supplier base. This list of factors is representative of the
factors which could affect our forward-looking statements and is
not intended as an all encompassing list of such factors. For
additional factors please see our Form 10-Q for the quarter ended
June 30, 2009, as filed with the SEC. We disclaim any obligation to
update these statements, whether as a result of new information,
future events or otherwise. DATASOURCE: ARRIS Group Inc. CONTACT:
Jim Bauer, ARRIS Investor Relations, +1-678-473-2647, , Alex Swan,
ARRIS Media Relations, +1-678-473-8327, ; or Erica Beyer, Digeo,
+1-425-591-2199, Web Site: http://www.arrisi.com/
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