Tandberg Television, the digital television broadcast system maker, has agreed to acquire IPTV delivery products developer SkyStream Networks for a cool $80 million. Privately held SkyStream was founded in 1996, enjoyed seven sequential years of revenue growth and just recently attained profitability in the fourth quarter of last year. In 2005 its revenue was $30.7 million, up 43 percent from the year before, with a gross margin of 65 percent. Tandberg's position as a force in the IPTV, cable, satellite and on-demand markets will be further solidified by the acquisition. SkyStream claims more than 300 clients worldwide and is a leader in the IP content delivery business, particularly for MPEG-4 encoding and transcoding.
For more on Tandberg's planned acquisition of SkyStream:
- see this press release