Tandberg Television, based in the UK, has reached an agreement in principle to acquire the business of Atlanta-based N2 Broadband, a provider of video-on-demand technology.
Under the terms of the agreement, Tandberg Television intends to acquire privately held N2 Broadband for a mix of cash and Tandberg shares. The total consideration is expected to be in the range of $110 to $130 million and completion of the transaction is subject to final negotiations, confirmatory due diligence and all customary legal and regulatory conditions.
The two companies have put in place a $3 million mutual breakup fee as part of the agreed terms of sale and the acquisition is expected to be completed in the first quarter of 2005.
Tandberg Television specializes in digital video compression, with compression products for MPEG-2, MPEG-4 AVC and SMPTE VC-1. It is a primary supplier of digital cable headends in Europe. It also serves the DTH satellite market and provides IPTV delivery systems to telcos.
N2 Broadband is a provider of open-platform products that enable network operators and content providers to offer on-demand services. It is a major vendor serving the North American cable television market.
As part of the deal, N2 Broadband’s president and CEO, Reggie Bradford, will take on the role of president of Tandberg Television Americas, to be headquartered in Atlanta.