Terayon Announces Acquisition of Imedia Corporation
Acquisition Adds Video Expertise to Terayon's Broadband Access Portfolio
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 13, 1999--Terayon Communication Systems, Inc. (Nasdaq:TERN -
news) today announced a definitive agreement to acquire Imedia Corporation.
Terayon, a leading supplier of broadband cable modem systems, plans to acquire Imedia, a privately held company that
produces routing and re-multiplexing systems for digital video. Imedia's innovative, patented products enable cable
operators to select and customize their program lineup for viewer preferences, while maximizing video capacity and quality
over standards-based set-top boxes. The acquisition will expedite Terayon's ability to offer a complete broadband system
portfolio to support high-speed delivery of data, voice and video over cable.
With the rapid evolution of broadband, increasing amounts of traffic are becoming video-based. The combined companies
will enable new interactive services based on Terayon's high-capacity broadband cable modem systems and Imedia's
efficient, video routing systems, providing a platform for new services such as local programming, targeted ads, and
web-enhanced video. This positions Terayon to participate in the coming era of highly interactive video applications --
video routing for high-speed Internet video, personalized TV, interactive video, and video-enhanced e-commerce.
Terayon CEO Zaki Rakib stated, ''The explosion in high-speed data and video will enable advanced new services over
broadband. Terayon's acquisition of Imedia will help us realize that vision, by combining Terayon's expertise in data over
cable with Imedia's innovative solutions for digital, compressed video.''
Peter van der Gracht, President and CEO of Imedia, stated, ''We are excited to join the Terayon team, and to add the
Imedia products to the impressive cable modem systems that Terayon is shipping to cable operators worldwide. This
combination will allow us to better serve the video and data needs of cable operators, and will position us to develop
advanced systems for delivery of video, voice, and data.''
The Imedia acquisition will be accounted for as a purchase. Terayon's acquisition of Imedia, which is valued at $100 million
in stock plus transaction costs, is expected to be effective late third quarter.
Terayon and Imedia have strong, complementary customer bases that include the world's leading cable operators. Imedia
has a customer base that includes major cable operators, such as Adelphia, Cox Communications, and Time Warner, as
well as partners, such as General Instrument. Terayon's cable modem systems are deployed by leading North American
cable operators, Cablevision Systems, Rogers Cablesystems, Shaw Communications and TCA Cable TV, as well as by
major international cable operators including United Pan-Europe Communications (UPC) in Europe, Jupiter
Telecommunications in Japan, and operators in Latin America.
Terayon's cable modems have the high capacity and reliability to support a broad range of residential and commercial data
services across cable plants, ranging from all-coaxial systems to hybrid fiber/coax (HFC). Terayon's systems incorporate
sophisticated Quality of Service (QoS) capability, allowing control of bandwidth in precise increments. This allows
broadband service providers to offer tiered services to their subscribers -- from residential Internet access to business
services for data and telephony. Terayon's cable modem systems, based on S-CDMA technology, provide reliable
two-way performance over the broadest range of cable systems. In addition, the high reliability of Terayon's S-CDMA
technology provides cable operators with lower operating and maintenance costs.
Terayon Communication Systems provides cable operators with reliable, high-capacity cable modem systems that support
a full range of broadband services. The Company, based in Santa Clara, California, USA, has sales and support offices
worldwide, and is traded on the Nasdaq National Market under the symbol TERN. Terayon can be found on the web at
www.terayon.com.
Privately held Imedia Corporation, based in San Francisco, develops and markets the industry's most powerful tools for
cable, satellite, and terrestrial television operators to manage compressed digital video. Their patented products are
currently used to deliver standards-based video (MPEG) to operators on three continents.
''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 to Editors: Terayon, the Terayon logo, TeraPro, TeraLink, TeraView, and TeraComm are trademarks of Terayon
Communication Systems, Inc. All other trademarks are property of their respective owners.
Contact:
Terayon
John Hamburger, 408/486-5273 (Press)
johnh@terayon.com
Ray M. Fritz, 408/919-5806 (Investors)
rfritz@terayon.com |
