Alcatel has inked a $30 million deal to acquire iMagicTV, a move that will shore up Alcatel’s position in the video-over-DSL sector.
Alcatel presently holds a 16 percent stake in iMagicTV, and has collaborated with the company on several video-over-DSL deployments. The deal calls for Alcatel to pay $1.20 per common share of iMagicTV, which had a net cash position of $35 million as of Nov. 30, 2002. The iMagicTV board has approved the sale and has recommended it for shareholder approval, Alcatel said.
Canada-based iMagicTV makes middleware and associated services designed to create, manage and deliver digital video and “rich media” services over a variety of broadband platforms, including ADSL, VDSL, wireless, Ethernet and fiber-to-the-home.
The seemingly smooth Alcatel-iMagicTV agreement is in stark contrast to the strife surrounding Motorola Inc. ‘s unsolicited tender offer to buy shares in Next Level Communications that it does not already own.