Pace announces agreement to acquire Bewan SystemsTuesday, March 2nd, 2010
French IPTV leaders add enhanced gateway capability to Pace’s converged digital TV offering
Pace plc (LSE:PIC), the leading developer of digital TV technologies for the payTV industry, today announced that Pace France has signed a conditional agreement to acquire Bewan Systems SA, the Paris-based IP and cable gateways specialist. The consideration for the acquisition, part of which is subject to achievement of earn out targets, will be payable in cash and will not exceed €12.5 million. The transaction is expected to be completed during the second quarter of 2010.
Bewan’s residential gateway capabilities – including expertise in xDSL and cable DOCSIS 3.0 IP connectivity technologies – will combine with Pace’s existing gateway business, enabling Pace to offer converged gateway and digital TV solutions to payTV customers. Additionally, the strong relationships Bewan has with several customers in Europe, North Africa and the Middle East will further widen Pace’s growing global presence.
Neil Gaydon, Chief Executive Officer, Pace said; “Pace’s vision is to become a world leader in converged digital TV entertainment. As payTV operators develop converged home entertainment services, advanced residential gateways will become increasingly important – both as standalone devices and integrated into set-top box products that drive whole home networks.
“Bewan will further diversify the Pace Group’s technology and product offering, helping deliver on our convergence vision. Bewan’s management team has built a successful, innovative business; its technologies, intellectual property, excellent products and highly skilled engineering teams, in combination with our business, will further reinforce our IP connectivity capabilities.”
Pace already has an excellent pedigree in IP connectivity; Pace’s hybrid devices include the Le Cube box for French operator, CANAL+ – Europe’s first satellite / IP hybrid set-top box to use the Ethernet port for video-on-demand (VOD) services – and a hybrid HD PVR for Viasat in Scandinavia and the Baltics. Pace has also developed both set-top boxes for the UK’s BT Vision service, including the recently launched Vision+. Pace has demonstrated early leadership in the nascent convergence market – our Home Content Sharing product in the US was the first commercially available platform of its type.
Eric Teissandier, Chief Executive Officer, Bewan, commented; “Pace has built a very successful global business, with an enviable track record of delivering technologically advanced products to many of the world’s payTV operators. Bewan’s know-how will further enable Pace to offer a compelling converged gateway proposition to the market; we’re excited about becoming part of it.”