Vyyo, a provider of broadband solutions used by telecoms to deliver both telephony and high-speed data connections, has entered into an agreement to acquire the shares of Xtend Networks. Xtend, headquartered in Tel-Aviv, Israel, with operations in Atlanta, provides solutions that increase the bandwidth of existing last-mile cable TV networks.
The transaction calls for the issuance of approximately 1,401,857 shares of Vyyo common stock and an additional 146,000 shares of restricted common Vyyo stock. The transaction further provides for cash payments, not to exceed approximately $10.7 million. The total consideration is expected not to exceed $19.6 million.
Today's cable TV subscribers require increased bandwidth capacity and symmetric transmission to enable T1 data transfer, HD television, video on demand and better upstream transfer capabilities. Xtend's technology addresses this need by creating a new accessible spectrum in the 900 to 3000MHz frequency range.
Xtend's multiplexing devices, broadband amplifiers, splitters and CPE devices enable extension of the usable spectrum of coaxial cable from a current maximum of 860MHz to up to 3GHz. The company's open architecture supports most existing and emerging standards, such as DOCSIS, DVB-C, DVB-S and Fast and Giga Ethernet.
Xtend has cash on hand of approximately $3.5 million which Vyyo believes will be sufficient to fund its business operations for the rest of 2004.