Arris Group Inc.
) has further strengthened its industry-leading IP video delivery
platform. Recently, the company acquired Ontario-based SeaWell
Networks, a leading developer of adaptive bit rate (ABR)
streaming technologies. However, the financial terms of the deal
are yet to be disclosed.
This was the first major takeover of Arris after its
acquisition of the set-top box business of Motorola Mobility.
Seawell boasts a powerful portfolio offering IP video,
multiscreen video, and ad insertion solutions.
In Oct 2013, the two companies had collaborated to introduce
integrated solutions to monetize multiscreen opportunities. The
multiscreen advertising solution integrates SeaWell's Spectrum IP
session delivery controller technology with Arris's SkyVision ad
Arris has restructured its business model into three reporting
segments, namely, network and cloud division, customer premises
equipment group and strategy and converged services unit.
SeaWell's ABR solutions will be integrated into Arris' network
and cloud division.
Arris expects the acquisition of SeaWell to enhance its
offerings through accelerated delivery of the personalized TV and
advertising solutions, streamlined video distribution across
verious devices and minimization of costs of multiple IP
streaming platforms for multiple devices.
We believe that the strengthening of the IP video delivery
platform is very crucial for Arris for its future growth
prospects. Just a month ago,
The Wall Street Journal
reported that IT giant
) is negotiating with
) to offer a cloud-based TV streaming service using Apple's own
set-top box. Earlier, Apple discussed a similar deal with
Time Warner Cable Inc.
), which failed to materialize.
Comcast and Time Warner Cable are the two major customers of
Arris. In the fourth quarter of 2103, the two companies together
constituted over 25.5% of the total revenue of the company.
Therefore, loss of any of these clients will considerably affect
the top line of the cable TV infrastructure vendor. Arris
currently has a Zacks Rank #3 (Hold).
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