Allot Communications has signed a definitive agreement to acquire Oversi Networks, a provider of rich-media caching and content delivery solutions for Internet video and peer-to-peer (P2P) traffic.
This transaction is another milestone in Allot’s vision of further enhancing its industry-leading Allot Service Gateway by offering a comprehensive video solution, which now includes both video optimization and caching. The incorporation of Oversi’s technology with Allot’s Service Gateway will allow fixed and mobile service providers to effectively manage the ever-increasing volume of video traffic on their networks. Allot’s fixed line customers report that video traffic currently uses over 50% of bandwidth and is rapidly increasing. On the wireless side, according to Allot’s latest Global MobileTrends report, video now represents 42% of mobile data traffic worldwide.
Oversi's innovative caching and acceleration solutions help both fixed and mobile service providers to relieve the heavy network congestion associated with Internet video traffic. Its technology identifies popular content and caches it at the edge of the network, therefore achieving significant bandwidth saving and minimizing long delays in Video delivery. The end result is a dramatic improvement in the subscribers’ quality of experience (QoE) for video applications. By assuring quality of experience, Oversi's solutions enable service providers to offer tiered services at different price levels, increasing average revenues per user (ARPU). Its solution has been widely deployed at several large and medium service providers to date.
"The acquisition of Oversi is another step in realizing our Service Gateway vision," commented Rami Hadar, Allot’s President and CEO. "By adding video caching, Allot now offers its customers a comprehensive video solution that includes the critical caching and optimization services required to manage the ever-increasing volume of over-the-top video on the Internet. Over the past year, we have seen an increase in customer interest in video caching solutions, which made clear to us the critical need for Allot to own a leading solution in this growing market instead of reselling a third-party offering. With our shared vision of enabling service providers to monetize video traffic, we are excited about incorporating another excellent team and product offering into Allot."
"By joining Allot, we will now be able to further our joint market vision more effectively," commented Oversi’s CEO, David Tolub. "While we have seen growing traction for our leading edge caching solutions, we believe that integrating our solution into the Allot Service Gateway will accelerate our market penetration by offering a more robust video solution. We are excited about joining the Allot team."
Under the terms of the acquisition, Allot will be paying $16 million in cash, as well as up to $5 million based on Oversi’s performance during 2012. The acquisition is subject to the satisfaction of certain closing conditions, and is expected to close during the third quarter of 2012.