12 September 2011
South Africa’s Allied Technologies is to acquire SetOne, a German-based supplier of digital video broadcasting (DVB) products and solutions, in an effort to expand its international footprint and entrench relationships with its international partners.
The deal is inclusive of all the intellectual property owned and already developed by SetOne.
“This acquisition enhances our ability to diversify Altech Multimedia’s income streams by growing its international business footprint and reducing its reliance on locally generated business and is in line with the Altech Group’s strategy to increase non-SA revenue and profits,” Altech CEO Craig Venter said in a statement this week.
Leading central European OEM
SetOne was incorporated in 2005 and has since been positioned as one of the leading Original Equipment Manufacturer (OEM) companies in central Europe, with an especially strong presence in Germany, Austria and Switzerland.
The company specialises in the domain of digital video broadcasting set-top box (STB) receivers, and has expertise and key skills in the supply chain design phase and product management of these products.
Its strength as a preferred supplier is evidenced by its recent breakthrough into Spain, Italy and other neighbouring countries in Europe.
“SetOne has established a significant track record in the STB repair and servicing business and is a preferred supplier in the central European region in terms of its OEM capabilities,” said Venter.
“The company has produced profitable results since its inception and with this acquisition we are well positioned to further entrench our leadership in the telecommunications, multi-media and information technology sector.”
Alliances with major key players
SetOne has built strategic alliances with major key players in the value chain of its products and services offering throughout Asia and Europe, which include license agreements with leading companies such as Sisvel, MPEG LA and Rovi.
SetOne is especially strong in the management of a range of outsource manufacturing partners for the DVB-T/T2 products intended for the European retail free-to-air (FTA) markets, both satellite and terrestrial broadcast.
The acquisition will enhance Altech Multimedia’s reach into international markets and further entrench its relationships with international partners regarding product development and management in these markets as well as leveraging established distribution channels and exploiting and cross-selling other business opportunities.
“This acquisition complements Altech Multimedia’s broadband and broadcast product offerings to address convergence within the multimedia market and strengthens our service offerings,” said Altech Multimedia CEO Peter Balchin.
Range of synergies between the two
According SetOne CEO Bartolomeo Caputo, the transaction brings together a range of synergies between the two companies that will be of enormous benefit to the European market.
“Since the founding of our company in 2005, we have strived to provide creative and innovative products and reliable service to all our customers and business partners,” he said. “Now with Altech Multimedia we look forward to taking our business to the next level.”
To preserve current efficiencies and standards, Altech will retain existing SetOne management and staff whilst it provides supporting administration services and strategic input to the company.
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