i have a story here that points to the next shoe that will fall
for Interphase and PowerSAN HBAs. Grass Valley now confirms what
i have been digging up on Interphase and video. new OEMs on the way
will be Avid Tech. and behind the seen Tektronix.
grassvalleygroup.com
Grass Valley Group Acquires
Tektronix Video Business
—New Digital Broadcast Equipment
Company Purchases Emmy
Award-Winning Profile, Grass Valley
Product Lines—
NEVADA CITY, Calif., Aug. 9, 1999 — A new,
privately-held digital broadcast and video equipment
company, Grass Valley Group Inc. has been formed and
has entered into an agreement to acquire the video
content production business of Tektronix Inc. (NYSE:
TEK). The acquisition is subject to regulatory approval
and is expected to be completed by the end of
September. Tektronix will retain a 10 percent equity
interest in the Grass Valley Group.
The Emmy® award-winning broadcast equipment,
brands, and products, including the Profile® digital
video server and the Grass Valley™ router, switcher,
and modular product lines, together with Tektronix'
extensive video content intellectual property portfolio,
are included in the transaction. The Tektronix video
content production business is a recognized technology
leader, with more than 40 years of television
broadcasting experience. Its heritage includes
numerous patents for television technology, as well as
helping to shepherd the broadcast television industry
through several critical technology transitions,
including the move from black-and-white to color
transmission and the move from analog to digital
broadcasting.
The acquisition is being financed by an investor group
led by Dr. Terence Gooding, an entrepreneurial
industrialist, and Tim Thorsteinson, president of
Tektronix Video and Networking Division (VND). Gooding
will serve as chairman and chief executive officer of
the Grass Valley Group, while Thorsteinson will serve as
the new company's president and chief operating
officer.
Currently, Gooding is co-chairman of the board of
Wavetek Wandel Goltermann Inc., the second largest
international communications test company. During the
past 35 years, Gooding has successfully led five
technology companies through product development
and complementary acquisitions into growth markets.
He has built two small companies to more than $1
billion in revenues.
The new company is expected to have annual sales of
approximately $250 million in the year 2000 and will
have approximately 700 employees worldwide. Key
engineering, sales, service, and marketing executives
currently with VND will continue in the new business.
Headquarters of the company will be in Nevada City,
California (northeast of Sacramento), with engineering
design centers in Nevada City and in Beaverton,
Oregon. The new company's on-going digital broadcast
and video product software-development efforts will
continue to be supported by the Tektronix
development center in Bangalore, India. European
headquarters for Grass Valley Group will be in London,
England, with sales and technical support in Paris,
France and Cologne, Germany. The Asia/Pacific market
will be supported from facilities in Tokyo and Hong
Kong.
"The Grass Valley Group brand stands for technology
leadership and customer intimacy, and it is the de
facto standard for broadcast industry support," said
Gooding. "The Profile server and Grass Valley switcher,
router, and modular products have an unassailable
reputation with broadcasters, an enduring legacy of
leadership, and a standard for excellence, which is a
critical advantage in today's dynamic broadcast and
professional video markets. The opportunities and
challenges of the conversion to digital technologies
require a nimble, proven innovator. The Grass Valley
Group is that innovator."
Approximately $1 billion of Grass Valley equipment is
installed worldwide, with nearly 80 percent of television
signals worldwide passing through it. The transition to
digital creates an opportunity for more leadership for
the Grass Valley Group: the company's digital switcher,
router, and modular products all hold a number-one or
number-two market position. According to industry
reports, the Profile line, with more than 22,000
channels shipped, currently enjoys both number-one
market share and brand-name awareness. By
leveraging an entirely new line of server, switcher,
router, and modular products, the Grass Valley Group
will aim to expand this leadership in the growing
broadcast and professional video equipment market
which is expected to require more than $10 billion of
new equipment over the next decade.
"This is a win for all stakeholders — there could not be
a better strategic direction for us," said Thorsteinson.
"Our name captures the spirit of innovation under
which this business was originally founded. Our energy
is directed at meeting our customers' digital
requirements. This will be evident in a fully refreshed
line of products that will be introduced over the next
nine months."
The Grass Valley Group recently extended its industry
leadership advantage with the release of its Kalypso™
Video Production Center family of products. The
Kalypso system, the industry's most self-contained,
powerful and cost-effective product for controlling
teleproduction environments, supports
standard-definition (SD) today and will be capable of
supporting high-definition (HD) in the future. The
product line has been well received by broadcast and
video customers, with commitments for 15 Kalypso
systems already received.
The Grass Valley Group also has the resources to serve
a variety of emerging markets. As the transition to
digital production and transmission takes hold, many
broadcast organizations are transforming themselves
into media companies capable of delivering content to
multiple, digital pipelines in applications for exciting new
markets ranging from the Internet to e-cinema.
"The Grass Valley Group's long-term roadmap takes
these developments into account: Our new products
will support these customers as they develop and
brand high-value content, regardless of its ultimate
digital destination, and make the Internet and similar
data services a vital part of their business models,"
said Thorsteinson. |
