We don’t know if ARRIS is going to buy Concurrent Computer, and neither does anyone else outside those two companies, but we can report that a pair of prominent analysts think ARRIS ought to acquire the VOD server and software vendor, and they say it probably will.
ARRIS is entering the digital video space with its D5 modulation device, but an entry isn’t enough, say Anton Wahlman and Eric Kainer of ThinkEquity, who believe ARRIS needs to move into video-on-demand to remain competitive with rival CMTS vendors Motorola, which just bought Broadbus Technologies, Cisco Systems, which just purchased Arroyo Video Solutions, and QAM and encoder specialist Harmonic Inc., which just grabbed the VOD assets of Entone Technologies.
Wahlman and Kainer argue that if ARRIS is to get into VOD, Concurrent is not a perfect fit, but of ARRIS’ two likeliest options – Concurrent and SeaChange – Concurrent is not only less risky, but also more in ARRIS’ price range. Also, don’t forget that Comcast Corp. has the right of first refusal should a suitor emerge for SeaChange’s VOD assets.
They also note the geographical proximity of the two companies, and the fact that there are a number of people who have worked for both, which could make integration of the two go more smoothly. That proximity could make consolidation go quickly.