twice connect

Arris To Acquire Digeo

9/23/2009 09:56:08 AM Eastern

Suwanee, Ga. - The assets of Paul Allen's advanced cable
set-top-box company Digeo will be acquired by
Arris Group in a $20 million cash deal announced by the companies Tuesday.

Through the agreement, which is expected to close early in the
fourth quarter of 2009, Arris Group will get Digeo's engineering team and intellectual
property portfolio.

Arris will add the Digeo assets to those it recently garnered
through the acquisition of EG Technology
(EGT) in a separate transaction, Arris

The Digeo deal brings "substantial technical expertise in video
networking and an innovative multimedia services delivery platform," the
companies said.

"The engineering talent and intellectual property acquired as
part of these transactions will be combined with Arris' internal development
efforts to accelerate the introduction of next-generation IP-based consumer
video products and services," according to a statement on the deal. "These new
products will allow the company's customers to cost effectively integrate and
distribute new forms of personalized multimedia content throughout the home."

Arris said it will continue to develop and market the current
line of Digeo DVR products, including Digeo's Moxi Cable DVR and consumer HD
DVR that uses the Moxi interface. Customers who have purchased or rented
through cable operators Digeo equipment "will continue to enjoy uninterrupted
service and updates," the company said.

"Several years ago we laid out a strategy to establish Arris as a
leader in video networking," stated Bob Stanzione, Arris chairman and CEO. "Our
strategy includes both organic development and strategic acquisitions. The
Digeo acquisition, along with our acquisition of EGT last month, has enhanced
our ability to aggressively pursue end to end video delivery initiatives."

Through the Digeo transaction, Arris will add approximately 75
employees located in Kirkland, Wash.

The addition of the Digeo engineering team will raise the company's
research and development investment by approximately $3M per quarter, the
company said.

"As the global leader in broadband technology for the cable
industry, Arris delivers the market position necessary to take the Moxi vision
to the next level," stated Greg Gudorf, Digeo CEO. "Arris recognizes the value
of adding Digeo's highly-innovative technology to its portfolio, allowing the company
to integrate the Moxi line of products and services as core to its expansion
into the digital home. Further, Arris recognizes the value Digeo's highly talented
people bring to the equation. I am extremely pleased that the Digeo team will
continue to drive the evolution of the Moxi platform."

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