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TANDBERG Television Acquires AVS(July 10, 2001)
The acquisition of the entire issued share capital of AVS, takes effect as of today, and will enable TANDBERG Television, already the global leader in the provision of Digital Electronic Newsgathering (D-ENG) solutions, to consolidate its pioneering role in a market sector it invented. The consideration of EUR3.2 million (EUROS) will be financed by EUR1.9m cash and up to 127,108 TTV shares, part of the consideration being deferred over a two-year period. TANDBERG Television will have 54,854,356 outstanding shares post this acquisition.
The acquisition will enable TANDBERG Television to move up the value chain in Digital ENG solutions, combining its D-ENG solutions with AVS' RF expertise and systems engineering expertise to offer complete end-to-end systems for the global D-ENG market, as well as stand-alone solutions that can be integrated with third party vendors' products. AVS brings complimentary products and expertise in up-conversion, down conversion, RF amplification and antennae and propagation expertise. The AVS business will be integrated into TANDBERG Television and AVS' 16 employees will become employees of TANDBERG Television AVS, remaining at their current workplace in Kemel, near Frankfurt. Reinhard Kuehn, AVS Founder & MD, will become the Managing Director of TANDBERG Television AVS.
"This acquisition makes perfect sense. We have been working in partnership with AVS for almost 3 years and the company and its people have strong RF technology expertise. TANDBERG Television is the recognised pioneer of OFDM-based Digital ENG solutions. Together we can combine complimentary skills and technology to provide complete systems that will enable our customers and our business partners around the world to make the move to digital and to overcome the quality problems long associated with analogue microwave feeds," says Joergen Bredesen, President and CEO of TANDBERG Television.
At the Amsterdam IBC exhibition in September this year, TANDBERG Television (Stand 1.421) will launch new D-ENG systems, which are the fruits of AVS and TANDBERG Television's development collaboration.
"There is a high degree of potential growth in the Digital ENG market, driven by the broadcasting industry's move from analogue to digital and especially by the introduction of UMTS at 3GHz and satellite mobile phones at 2GHz, that will force governments to make major spectrum re-allocations affecting all ENG users worldwide. By joining forces with TANDBERG Television, AVS can build on its RF and D-ENG development work, benefit from the technology vision, global resources and leadership of TANDBERG Television and harness this market potential," says Reinhard Kuehn, AVS' Founder & MD, and newly appointed Managing Director of TANDBERG Television AVS.
For more information visit www.tandbergtv.com
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