Harmonic Inc. will acquire the video networking software business of Entone Technologies for $45 million – $26 million in cash and approximately 3.54 million shares of Harmonic common stock.
The Entone software technologies cover content ingest, distributed content management and video streaming, enabling video-on-demand (VOD), network personal video recording (nPVR), time-shifted television and targeted advertisement insertion. Harmonic will combine those products with its own headend, edge and access network solutions.
Entone claims over 35 IPTV deployments, including PCCW of Hong Kong. Earlier this year, Siemens announced it had integrated Entone technology with its “Surpass” system for IPTV.
The acquisition was announced Tuesday (Aug. 22), the same day that Cisco Systems Corp. announced its acquisition of VOD provider Arroyo Video Solutions. That larger transport companies are buying smaller companies with on-demand technology is a clear indication that VOD in particular and IPTV in general are becoming mainstream.
Toward further consolidation of the VOD sector, Motorola Inc. recently agreed to buy Broadbus Technologies, reportedly for $186 million.