NDS to Acquire Jungo

NDS Group Plc, a provider of digital pay-TV technology, has agreed to buy Jungo Ltd., a developer of residential gateway software based in Israel, for up to $107.5 million in cash.

The deal includes a $17 million payment contingent on reaching certain fiscal targets for 12 months following the completed acquisition. The companies expect to close the deal early next year.

Jungo will operate as a separate unit within NDS; its current management team will remain in place, NDS said. Jungo’s products include OpenRG, a middleware software platform for deployment on network devices that include triple-play residential gateways, home/SOHO routers, wireless access points, cable/DSL routers and voice gateways. Jungo’s customers include Actiontec Electronics Inc., Cisco Systems Inc., Pirelli, Sagem Communication, Siemens and Westell Technologies Inc., which sell the residential gateways to major broadband pay-TV operators such as France Telecom, NTT Communications, Qwest Communications International Inc. and Verizon.

Residential gateways are used for the delivery of services such as broadband data, IPTV, VoIP, video telephony and convergent wireless/wireline telephony.

NDS said the privately held Jungo is a fast-growing company that, in the nine months ending Sept. 30, saw revenue grow by more than 100 percent to $11.4 million. Jungo’s investors include Intel Communications Fund, Cipio Partners and Telesoft Partners.

Tamir Fishman & Co. acted as an exclusive financial advisor to NDS Group, while Herzog Fox Neeman served as its legal advisor in Israel. Jefferies Broadview acted as an exclusive financial advisor to Jungo, and Ori Rosen & Co. was its legal advisor.

NDS is a subsidiary of News Corp. headquartered in Britain.

Jungo Ltd. www.jungo.com  

NDS Group www.nds.com

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