A UK-based provider of digital pay-TV technology and services has acquired an Israeli specialist in embedded PCI/USB device-driver toolkits and Linux software stacks targeting residential and business edge routers. The NDS Group says its $107.5 million cash acquisition of Jungo Ltd. will help it compete in the converging broadcast/broadband market.

Specifically, NDS says Jungo's products and expertise will speed its ability to offer “end-to-end” solutions. NDS currently offers software stacks for IPTV set-top boxes, and says that providing gateway/access device software as well will help it offer “enhanced, optimized, and managed” video-over-broadband. The gateway “plays a key role” in controlling and managing video, voice, and data services, according to the company.

Additionally, NDS hopes Jungo's market presence will help it market its Synamedia IPTV system offerings. Jungo's customers reportedly include Actiontec, Cisco, Pirelli, Sagem, and Siemens — all of which sell gateways to major broadband pay-TV operators, including France Telecom, NTT, Qwest, Telecom Italia, and Verizon, according to NDS.

Jungo is among the oldest Linux network stack providers, with a history reaching back into the 1990s. It is best known for its OpenRG (open residential gateway) stack. It has also marketed WinDriver user-space USB and PCI driver development kits for Linux and eCos for many years.

The NDS buyout involves a purchase of all of Jungo's share capital for up to $107.5 million, of which $17 million depends on attainment of fiscal targets a year out from the expected purchase completion date during the first calendar quarter of 2007.

NDS describes Jungo as “profitable,” and “fast growing.” During three quarters ended Sept. 30, 2006 Jungo reportedly doubled revenues, to $11.4 million. Jungo has been funded in part by Intel Capital/Israel.

According to NDS CEO Dr. Abe Peled, NDS is “committed to serving all of Jungo's current customers, as well as helping the Jungo team expand their market penetration worldwide.”

Jungo CEO Ofer Vilenski added, “We are delighted about the confidence our customers will have using our products, now backed by such an accomplished and innovative company.”

 
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