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TEL AVIV Dec 4 NDS Group Plc NNDS.O, which
provides technology for digital pay-TV, said it will acquire
Israel's Jungo Ltd., which develops residential gateway
software, for up to $107.5 million in cash.
This includes a $17 million payment contingent on the
attainment of certain targets in the 12 months following
completion of the deal.
The deal is expected to be completed in the first calendar
quarter of 2007, NDS said in a statement.
NDS, a majority owned subsidiary of News Corp. NWS.N, is
headquartered in Britain with development centres in Israel and
Jungo's customers include companies like Cisco and Siemens,
who sell their residential gateways to major broadband pay-TV
operators such as France Telecom, NTT, Qwest, Telecom Italia,
Verizon and others.
In the nine months ending September 30, Jungo's revenues
grew by more than 100 percent to $11.4 million. NDS noted that
Jungo was a profitable company.
Residential gateways are increasingly deployed by
telecommunication companies as the main service termination
point in the customer premises for the delivery of services
including broadband data, IPTV, voice over internet protocol
(VoIP) telephony, video telephony and convergent
The residential gateway and the software contained in it
act as the interface between the broadband network and the
various consumer electronic devices that are attached in the
home network including IPTV set-top boxes.
"The acquisition of Jungo positions NDS to better serve the
ever-increasing need of pay-TV and telecom network operators to
offer reliable video over broadband services," Abe Peled, NDS
president and chief executive, said in a statement.
Jungo will continue to operate as a separate unit within NDS
under the leadership of the current management team.
Among Jungo's investors are Intel Capital, the venture
capital arm of Intel Corp. (INTC.O).