Norwegian company Network Electronics has signed a definitive agreement to acquire Californian outfit Video Products Group Inc, a provider of professional video/audio transport systems for local and wide area networks that employs approximately 60 people worldwide. The transaction is expected to close in January 2008, writes Andy Stout.
According to a released statement, the agreement combines two companies that are "true industry leaders within their respective fields to form a powerful player in the professional video and audio signal transport markets." The deal certainly enables Network Electronics to increase its scope and scale with the industry's most comprehensive product portfolio for the professional video transport market.
"The video market is presently undergoing rapid consolidation and convergence, and it is critically important that companies can choose video transport solutions that bridge the telco and broadcast worlds and maximise future flexibility. By bringing together VPG's technology and video transport expertise with Network Electronics proven solutions, we are able to create a best-in-class offering for video transport solutions. Moreover, VPG's strong telco customer base, combined with Network Electronics extensive global market presence, adds significant momentum to Network Electronics with increased critical mass and greater opportunities for future growth." said Oddbj_rn Bergem, CEO, Network Electronics.
The new combined product offering will be unique in its functionality, features and breadth, enabling telcos and broadcasters to build complete video transport systems from a single source. This end-to-end suite of video transport solutions enables broadcasters and carriers to build intra-facility networks and long distance contribution, production and content distribution networks over IP, SDH/SONET and CWDM and DWDM.
"The combination of the technology and talented employees of Network Electronics and Video Products Group creates a world class company and provides enhanced future opportunities for all our customers, partners and employees," says Helen Keane, CEO, Video Products Group.