Allot Communications Ltd. (Nasdaq:ALLT; TASE: ALLT), which provides service optimization and revenue generation solutions for fixed and mobile data networks, has announced that it has signed a definitive agreement to acquire Ortiva Wireless, which offers innovative solutions for mobile video management. Allot is headquartered in Hod Hasharon and Ortiva is based at La Jolla in California.
Allot said that the deal will enable it to further enhance its Allot Service Gateway by integrating mobile video optimization solutions into a single network intelligence platform or offering it as a standalone solution. Allot added, "The incorporation of Ortiva's technology within Allot Service Gateway will allow mobile service providers to effectively manage the ever-increasing volume of video traffic on their networks, which according to Allot's latest Global MobileTrends report, now represents 42% of mobile data traffic worldwide."
Ortiva's solution allows service providers to improve the quality and efficiency of media content delivery by optimizing for real-time network conditions and for each mobile connection. This dual optimization capability enables the highest quality of experience for video consumers especially in fluctuating and constrained network conditions. Ortiva's solution has been deployed at two Tier 1 mobile service providers to date.
Allot president and CEO Rami Hadar said, "This acquisition is an important building block in our Service Gateway vision. Since the introduction of Allot Service Gateway in 2007, our goal has been to leverage our unique technology to enable the broadest range of cost-saving and revenue-generating services on a single intelligent network services platform,"
He continued, "By purchasing Ortiva, we will own an innovative video optimization solution, one of the major value-adds that our customers are seeking today. As video becomes an ever-increasing challenge for mobile networks, this acquisition will allow Allot to offer a robust and tightly integrated video optimization service within Allot Service Gateway."
Ortiva's CEO Marc Zionts said, "Combining our unique technology with Allot's industry-leading solutions will allow us to continue and expand our mission of enabling service providers to manage the ever-increasing flood of data traffic while significantly improving the quality of experience for each individual subscriber."
The terms of the acquisition were not disclosed. The acquisition is subject to the satisfaction of certain closing conditions, and is expected to close during the second quarter of 2012. Ortiva will contribute between $3-5 million in revenues for the second half of 2012.
Allot's share price rose 12.5% today on the TASE to NIS 103.50. The share closed at $24.54 on Nasdaq yesterday, giving a market cap of $776.8 million.
Published by Globes, Israel business news - www.globes-online.com - on May 1, 2012
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