Thread,
Quote | Charts | News | Financials | Discussion | Earnings Est. | Profile | SEC | Hist. Prices | Industry Grp. | Broker Research
TERN : TERAYON COMMUNICATIONS SYS (NASDAQ)
All Headlines
Terayon to Acquire Telegate for Broadband Telephony
Combined Customer Base and Distribution Partnership Provide Market Leverage
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 12, 1999--Terayon Communication Systems, Inc. (Nasdaq: TERN) today announced a definitive agreement to acquire Telegate Ltd. Terayon, a leading supplier of broadband access systems, plans to acquire Telegate, a privately held company that produces advanced systems for telephony-over-cable. In a separate announcement, Terayon also announced a partnership agreement with ECI Telecom, a Telegate investment and distribution partner.
Telegate's advanced and highly integrated Multigate telephony and data access platforms are deployed today by leading service providers to deliver efficient carrier-class voice services over cable. Telegate also provides in-home networking capability for telephony and data, based on the DECT (Digital Enhanced Cordless Telephony) standard. Telegate's systems support voice, high-speed data, and ISDN (Integrated Service Digital Network) services for the business telecommuting market and the SOHO (Small Office/Home Office) market. With its highly complementary customer base, the Telegate acquisition significantly increases Terayon's market footprint.
Terayon CEO Zaki Rakib stated, "Telegate's extensive telephony expertise, vital to success in the telephony-over-cable business, provides a strategic addition to Terayon's growing broadband product portfolio. Telephony is the next logical piece in our broadband product arsenal, complementing Terayon's cable modem access systems and our recently acquired digital video re-multiplexing systems. This combined capability positions Terayon to play a leading role, as the broadband multimedia explosion takes off."
Ehud Iloni, President and CEO of Telegate, stated, "We are pleased to join Terayon in building leading, cost-effective `one stop shop' access solutions for broadband voice and data service providers. Given the complementary technology assets and customer bases of our two companies, I am confident that we are well positioned to secure a substantial share of the growing broadband telecom equipment market."
The Telegate acquisition will expedite Terayon's ability to offer a complete broadband portfolio to support high-speed delivery of voice, data, and video services over cable. This acquisition contributes to Terayon's efforts to build a common multimedia platform to deliver current and advanced broadband services.
With the rapid evolution of broadband, cable television operators are seeking to leverage the cable infrastructure to provide a bundle of voice, data, and video services to their subscribers. Telegate's solid engineering expertise and its unique multiservice platform will enable Terayon to add a carrier-class telephony system to its product offering, complementing Terayon's industry-leading cable modem access systems and the digital video routing and re-multiplexing systems from the recent Imedia Corporation acquisition.
The Telegate acquisition will be accounted for as a purchase. Terayon's acquisition of Telegate, which is valued at approximately $100 million in stock plus transaction costs, is expected to close this quarter.
Terayon and Telegate have strong, complementary customer bases that include the world's leading cable operators. Telegate's systems are commercially deployed by Telenet Flanders in Belgium and leading operators in Germany and China. In addition, Telegate's systems are in evaluation with leading operators in Netherlands, Austria, Argentina, and Brazil. As its distribution partner, ECI Telecom will provide Terayon with access to a large sales force with a customer presence in 145 countries around the world.
Terayon's systems are deployed by Time Warner and Cox Communications in the U.S.; Rogers Cablesystems and Shaw Communications in Canada; United Pan-Europe Communications (UPC) in Europe; Jupiter Telecommunications in Japan; and Globocabo/NET Brasil in Latin America.
Telegate's Multigate system provides unique advantages in the cable industry due to its ability to simultaneously support a variety of value-added voice and data services over one video channel, via a single integrated subscriber unit. This allows operators to penetrate new markets and generate multiple revenue streams. The system is based on S-CDMA (Synchronous Code Division Multiple Access), ensuring the high capacity and reliability that are essential for lifeline telephony services.
Terayon anticipates strong synergy between Telegate's broadband telephony expertise, combined with Terayon's recent acquisitions of Radwiz (IP network routing for the SOHO market) and Imedia (digital video re-multiplexing).
Terayon offers two lines of cable modem systems, one based on S-CDMA technology and the other CableLabs(R) Certified(TM) to meet the DOCSIS (Data Over Cable System Interface Specification) cable modem standard. Each system's high capacity and reliability enables cable operators to offer a broad range of residential and commercial data services across cable plants, ranging from all coaxial to hybrid fiber-coax (HFC). Complementing its proven data systems, Terayon's advanced CherryPicker(TM) digital video systems give operators unprecedented flexibility in assembling customized television programming line-ups from multiple sources.
Terayon Communication Systems provides cable television operators with broadband communication systems for delivering advanced data, voice, and video services. The company's cable modem systems and advanced digital video systems are deployed by leading cable operators worldwide. Terayon, based in Santa Clara, California, USA, has sales and support offices worldwide, and is traded on the Nasdaq under the symbol TERN. Terayon can be found on the web at www.terayon.com.
Telegate Ltd., based in Israel, develops, manufactures and markets advanced local access systems for the CATV (cable television) broadband industry. The company's flagship product, Multigate, provides operators with an integrated solution for simultaneously transporting telephony, high-speed data, cordless mobility (DECT for cordless voice and data services), ISDN and other broadband services over HFC networks. Telegate's investors include General Instrument Corporation (NYSE: GIC), ECI Telecom Ltd. (Nasdaq: ECIL), the Giza Fund of GE Capital Group, and Nomura Securities. Telegate can be found on the web at www.telegate.co.il.
"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements, estimates, and assumptions by the Company and other parties that involve risks and uncertainties, including the Company's ability to gain new business, the expansion of operations by the Company's customers and the deployment of the Company's products in specific markets, as well as the other risks detailed from time to time in the Company's filings with the SEC.
Note: Terayon, the Terayon logo, TeraPro, TeraLink, and TeraComm are registered trademarks of Terayon Communication Systems, Inc. TeraView and CherryPicker are trademarks of Terayon Communication Systems, Inc. All other trademarks are property of their respective owners.
--------------------------------------------------------------------------------
Contact:
Terayon Communications Systems Inc.
Ray M. Fritz, 408/919-5806 (investor contact)
rfritz@terayon.com
or
John Hamburger, 408/486-5273 (press contact)
johnh@terayon.com
or
John Giddings, 408/486-5223 (press contact)
jgiddings@terayon.com
All Headlines
Additional Headlines
BW 10/12 16:44 Terayon Partners with ECI Telecom for Cable Access Market
|
