Tektronix Mixes In Some M&A
Financial terms of the agreement weren't disclosed, but the deal, announced Monday, will give Tektronix access to a line of network monitoring systems designed to check the health of a wide range of video applications and services, including interactive apps based on Enhanced TV Binary Interchange Format (EBIF) as well as broadcast video, video-on-demand, and switched digital video. (See Checking EBIF's Heartbeat .)
El Segundo, Calif.-based Mixed Signals offers those products under the Sentry brand and counts nine of the top US cable MSOs and three of the top five in Canada as customers, including Bright House Networks and Rogers Communications Inc. (Toronto: RCI).
Tektronix isn't saying how much business Mixed Signals brings to its table, but the contribution isn't expected to be hugely material when compared to its overall sales pie. Tektronix, a company founded in 1946, reported $1.1 billion in sales for fiscal 2007 -- the last time it revealed earnings figures. (See Danaher to Buy Tektronix.)
Eben Jenkins, general manager of video test at Tektronix, says the purchase will allow his company to expand its quality of service (QoS) and quality of experience (QoE) services and products deeper into video network management and perform direct "triage" on a wider range of video services.
Tektronix already offers a line of test-and-measurement gear for the ingest/contribution end of the video ecosystem, which includes the production and editing of uncompressed video. It also sells a line of MPEG video analyzers and monitoring systems. (See Tektronix Offers QoE Detection to Cable.)
Jenkins says it's too early to determine how Tektronix might integrate Mixed Signals gear and software into its product lines.
Eric Conley, the CEO of Mixed Signals, says the deal will allow his company to expand internationally and to develop new products more quickly than it could on its own.
The companies declined to say how many employees from Mixed Signals will be joining Tektronix, or how many people Mixed Signals employs. Conley confirmed, however, that he will be staying on board to continue to run the Mixed Signals product line.
The deal further consolidates cable's video test-and-measurement business. In February, Cheetah Technologies LP snared the video QoE assets of Symmetricom Inc. (Nasdaq: SYMM) for $2.25 million in cash. Combined, those deals should expand the scope of competition in a sector that includes the likes of JDSU (Nasdaq: JDSU; Toronto: JDU), EXFO (Nasdaq: EXFO; Toronto: EXF), and IneoQuest Technologies Inc. (See Cheetah Grabs Symmetricom's V-Factor.)
— Jeff Baumgartner, Site Editor, Light Reading Cable