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ActiveVideo Networks Acquires Avinity for European iTV Expansion

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ActiveVideo Networks expanded its European presence today with the announcement that it is acquiring Netherlands-based Avinity Systems BV. Financial terms of the deal were not disclosed.

The two companies offer similar cloud-based technologies that deliver interactive TV services to multiservice operators and programmers. Through the acquisition ActiveVideo says it will inherit an instant footprint in Europe, expand its technology portfolio and gain size and strength to attract bigger clients.

ActiveVideo’s acquired footprint isn’t very big, however, as Avinity is on roughly 200,000 set-top boxes in Europe. According to the rep, Avinity is in the same position ActiveVideo was years ago — trying to convince potential clients that it can scale appropriately to millions of customers. The combined company will have track record of working with clients such as Oceanic Time Warner Cable and PCCW in Hong Kong, and can leverage that experience to attract bigger European clients. ActiveVideo says it will be in 5 million homes by the end of this year.

As a result of the acquisition, ActiveVideo will shut down its London office (which only employed one person whose contract has expired) and shift European operations to Avinity’s headquarters in Hilversum, The Netherlands (near Amsterdam). Avinity will become ActiveVideo Networks and its team of roughly 20 employees will remain there.