| On2 Technologies Announces Acquisition of Hantro Products For $58.5 Millions |
|
|
| By Sharat Khungar | ||||||
| Monday, 18 June 2007 | ||||||
|
USA based On2 Technologies, Inc. announced that it has entered into a definitive agreement to acquire Oulu-based Hantro Products Oy, a provider of video technology for mobile devices. Hantro is recognized as the market leader in wireless video intellectual property as measured in revenue, number of shipped devices, and number of customers. The deal represents a big step toward bringing higher-quality video to mobile handsets and other consumer devices. Hantro’s technology has been installed on more than 200 million mobile handsets. On2’s video compression technology is used in Adobe Flash player. The acquisition will take On2's video compression technology, which is used in Adobe Systems Inc.'s Flash player, into mobile phones. Combined with Hantro's chip design capabilities, On2 says its video compression software can be embedded in consumer electronic devices, which should prolong battery life and result in cheaper devices. Based on On2's closing share price of $3.38 on Friday May 18, the acquisition is valued at about $58.4 million. On2 will pay $6.8 million in cash. The acquisition by share exchange is expected to close before mid-August 2007. The combined company will continue to support Hantro’s customers with Hantro’s market leading multi-format hardware video IP products offering the widest range of options for semiconductor companies developing multimedia chipsets. The combined company will offer a full range of products and capabilities for video applications ranging from very low data rates to high-definition video across web, embedded devices, consumer devices and mobile/Wifi applications. The move is part of a larger strategy to target the three major platforms, which include personal computers and television, in addition to mobile devices. “We have long set the standard for excellence in video with our codec technology. By gaining access to Hantro’s technology and expertise in chip implementation, we expect to be able to extend our reach on devices,” said Bill Joll, president and CEO of On2. “We are looking forward to giving our current customers access to On2’s best-of-breed technology and to making the On2 TrueMotion® codecs available for the first time at the hardware level,” said Eero Kaikkonen, president and CEO of Hantro. “In the device industry, ease of implementation, low power consumption, high performance and low bill of materials are important factors when evaluating technology.By adding On2’s codecs to Hantro’s current offerings, we will lead the industry in highly optimized, scalable and economically viable solutions for cross-platform applications that are shaping the future of video.” One of the many barriers to the takeup of mobile content services is that the few mobile devices that can handle video applications are still very costly. "The goal is for users on cell phones to experience the same videos that they can on the Web," says Eric Ameres, On2's chief technology officer. "With this type of technology we're embedding the ability to get all the same content… and it would look as good as on your PC."
|
||||||
| Next > |
|---|
