ARRIS, Charter Acquire ActiveVideo® Through New Joint Venture
SUWANEE, Ga. and STAMFORD, Conn., April 14, 2015 /PRNewswire/ -- ARRIS Group Inc. (NASDAQ: ARRS) (ARRIS) and Charter Communications, Inc. (NASDAQ: CHTR) (Charter) announced today that they established a joint venture that has agreed to acquire ActiveVideo® for approximately $135 million. ARRIS will own 65% of the joint venture company and will be the sales channel for ActiveVideo's CloudTV platform. Closing of the transaction is expected to occur in the second quarter, subject to customary closing conditions, including receipt of necessary regulatory approvals.
ActiveVideo is the developer of CloudTV™, the only cloud-based software platform enabling service providers, content aggregators, and consumer electronic (CE) manufacturers to rapidly deploy new services by virtualizing consumer premises equipment (CPE) functions in the cloud. CloudTV enables the delivery of next-gen user interfaces, online content, and interactive advertising for TV to millions of set-tops and connected devices. ActiveVideo's CloudTV platform and proven intellectual property (39 issued patents and 64 pending) will complement ARRIS's cloud portfolio. ARRIS's service provider relationships, global reach and installed base of CPE are expected to accelerate adoption of ActiveVideo's technology.
ActiveVideo's platform powers Charter's new fully featured, cloud-based Spectrum Guide. Charter expects to launch Spectrum Guide on Worldbox, as well as on legacy boxes currently deployed within the Charter footprint. ActiveVideo's global base of customers includes: Cablevision, Liberty Global, Deutsche Telekom, Time Warner Cable, J:COM, Philips, and Roku.
"This joint venture signifies ARRIS's continued investment in advanced software solutions that will create value across the entire video ecosystem," said Bob Stanzione, ARRIS Chairman and CEO. "We look forward to the untold opportunities our extended partnership with Charter will spawn as we march together into the future. ARRIS and Charter are paving the way for an all IP network migration and enabling the software-defined TV experience that will deliver the unified, next-gen content experiences that today's consumers demand."
"ActiveVideo's CloudTV platform is one of the enabling technologies behind Spectrum Guide. We have worked very closely with ActiveVideo on the development of this technology, and now, as a 35% shareholder, are uniquely positioned to support the continued innovation and marketplace adoption of ActiveVideo's solutions," said Tom Rutledge, President and CEO of Charter Communications. "Today's announcement extends Charter's long-standing relationship with ARRIS, who continues to be a key provider of both infrastructure and consumer premises equipment. We are excited to be partnering with them on this acquisition and to be continuing our collaboration on next-generation platforms."
Jeff Miller will continue to lead ActiveVideo as CEO. "This joint venture gives us the ability to take ActiveVideo's vision to the next level by partnering with two industry forces such as ARRIS and Charter. This is a great opportunity to extend the promise of ActiveVideo's solutions," said Jeff Miller.
About ARRIS ARRIS is a global innovator in IP, video and broadband technology. We have continually worked with our customers to transform the experience of entertainment and communications for millions of people around the world. The people of ARRIS are dedicated to the success of our customers, bringing a passion for invention that has fueled our history: We created digital TV, delivered the first wireless broadband gateway and are pioneering the standards and pathways for tomorrow's personalized, Ultra HD, multiscreen, and cloud services. We are dedicated to meeting today's challenges and preparing for the tasks the future holds. Collaborating with our customers, ARRIS will continue to solve the most pressing challenges of 21st century communications. Together, we are inventing the future. For more information: www.arris.com
About Charter Charter (NASDAQ: CHTR) is a leading broadband communications company and the fourth-largest cable operator in the United States. Charter provides a full range of advanced broadband services, including advanced Charter Spectrum TV® video entertainment programming, Charter Spectrum Internet® access, and Charter Spectrum Voice®. Spectrum Business similarly provides scalable, tailored, and cost-effective broadband communications solutions to business organizations, such as business-to-business Internet access, data networking, business telephone, video and music entertainment services, and wireless backhaul. Charter's advertising sales and production services are sold under the Charter Media® brand. More information about Charter can be found at charter.com.
This news release contains forward looking statements with respect to ARRIS Group, Inc. The statements include, among others, the anticipated closing of the acquisition, the ability to accelerate time to market of the ActiveVideo products, future opportunities resulting from the formation of the joint venture, continued innovation, and general expectations for the acquisition and the formation of the joint venture. Actual results may differ materially from those contained in any forward-looking statements. Specific factors that could cause material differences include, among other things, the ability to satisfy the closing conditions, including receipt of necessary regulatory approvals, potential impact on the business of ActiveVideo or uncertainty regarding the acquisition, customer acceptance of and the demand for ActiveVideo products and the possible loss of ActiveVideo's employees. The above listing of factors is representative and is not intended as an all-encompassing list of factors. For additional factors, please see ARRIS's Annual Report on Form 10-K for the year ended December 31, 2014. ARRIS disclaims any obligations to update forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.