NDS puts up $107.5 M for Jungo
NDS, which will pay up to $107.5 million in cash for Jungo, said the acquisition will better position it for the broadband television market, since the gateway will play a key role in controlling the quality and management of IP-delivered services.
Jungo's flagship product is OpenRG, a middleware platform for cable- and DSL-fed home network devices and residential gateways. CPE customers include Actiontec, Cisco, Pirelli, Sagem, Siemens and Westell, which, in turn, sell their wares to operators such as France Telecom, NTT, Qwest, Telecom Italia, and Verizon.
Jungo revenues reached $11.4 million for the nine months ended Sept. 30, a year-over-year increase of more than 100 percent.
In addition to leveraging Jungo's deployments with major telcos, the deal will also aid in the promotion of NDS' Synamedia IPTV system.
Alan Bezoza, an analyst with Oppenheimer & Co. Inc. , said the deal will enable NDS to sell Jungo's products to the NDS base, and position Jungo's technology onto the set-top environment. Bezoza maintained his "buy" rating on NDS.
"We continue to feel that NDS has positioned itself well, providing security, middleware and other video applications to service providers around the globe," Bezoza explained in a research note.
The companies expect to complete the deal in Q1 2007. Once the deal is closed, Jungo will operate as a separate unit within NDS under the current management team, which includes Jungo CEO Ofer Vilenski.