Allot to buy Ortiva Wireless, add video optimisation

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Ortiva buy provides Allot with video optimisation service offering

Allot Communications has said it is to acquire Ortiva Wireless, adding Ortiva's video optimisation platform to Allot's network intelligence and management capabilities.

That would allow Allot's mobile service provider customers to manage more effectively video traffic on their networks. Mobile video, according to Allot’s latest Global MobileTrends report, now represents 42% of mobile data traffic worldwide.

Ortiva’s solution allows service providers to optimising rich media content delivery for real-time network conditions and for each mobile connection. It has been deployed at two Tier 1 mobile service providers to date. Allot said it would offer Orqiva's video optimisation capabilities either in an integrated manner, within a single network intelligence platform (Allot Service Gateway) or as a standalone solution

“This acquisition is an important building block in our Service Gateway vision,” commented Rami Hadar, Allot’s President and CEO. “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. 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. We look forward to welcoming Ortiva’s talented team into our company.”

“We are excited to join the Allot team,” commented Ortiva’s CEO, Marc Zionts. “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. We look forward to growing together as one company.”

The terms of the acquisition were not disclosed. The acquisition is expected to close during the second quarter of 2012. Allot's management currently anticipates Ortiva will contribute between $3-5 million in revenues for the second half of 2012, with a gross margin profile similar to Allot’s current level.