Tandberg Television to Acquire SkyStream for $80M

Tandberg Television is purchasing Sunnyvale, Calif.-based IP technology developer SkyStream for $80 million in cash and stock. The acquisition, which is expected to close in April, will expand Tandberg Television's technology and services for IPTV, cable, satellite and on-demand markets.

"The sands are shifting in the digital media market and there is an inevitable level of industry consolidation taking place. In a marketplace with a number of acquisition opportunities to pursue, we chose to acquire SkyStream because of the company's best-in-class technologies and its strong culture of building revenue and profitable growth," said Eric Cooney, president and CEO of Tandberg Television.

SkyStream's products include high density Mediaplex-20 and iPlex switched digital video headends for MPEG-2 and MPEG-4 AVC encoding and transcoding. The company employs approximately 100 people across North America and in the UK, China and Korea. It has more than 300 customers worldwide including Safeway, Reuters, EchoStar Communications Corp. and Comcast.