In a transaction worth approximately $135 million, Charter Communications has formally acquired ActiveVideo from ARRIS.
As per the statement released by Charter, ARRIS will own 65% of the joint venture company formed by ARRIS and Charter for the acquisition. Also, ActiveVideo will be an independent entity operating on its own from the two companies. ARRIS will now become the sales channel for ActiveVideo’s CloudTV platform outside of sales to Charter.
There will be minimal changes to the management teams of both companies. “Jeff Miller will continue to lead ActiveVideo as CEO. The ActiveVideo Board of Directors is comprised of both ARRIS and Charter executives, with Board composition commensurate with the companies’ ownership,” the statement said. However, a few appointments are expected to be done so that it reflects the spirit of the acquisition deal.
ActiveVideo is the developer of CloudTV, a 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.
The platform is one of the key technologies enabling Charter’s new fully featured, cloud-based Spectrum Guide. The deal will mean good for customers of both companies owing to their first-rate reputation in the international technology market. It is that the minds behind this acquisition are hoping will help turnaround fortunes and make them a force to reckon with. Very few mergers get to see light of the day but Charter and ARRIS have all the reasons to believe that theirs will be totally different.
Their customers are also hopeful that the deal is beneficial. “This is something that we have been waiting for many years and expect to get the best out of it,” said Greg Sinclair, a Charter customer.