Scientific-Atlanta pulled out its checkbook to bolster its international presence last week, agreeing to purchase BarcoNet in a cash deal valued at $154 million. The U.S. cable powerhouse agreed to pay $5.10 for each outstanding share.

The deal, which includes all outstanding warrants and options, is expected to close in December after regulatory approval and should encounter little resistance from shareholders. Scientific-Atlanta paid a 111% premium over the stock's Nov. 8 close of $2.42 on the EuroNext exchange in Brussels. The payoff is an instant clientele in Europe with BarcoNet's installed base of head-ends employing the Digital Video Broadcast (DVB) standard favored in the region.

The move is driven by Scientific-Atlanta's push to capitalize on the emerging demand for broadband transmission equipment and digital set-top boxes in the European market. On Sept. 6, the company announced the formation of an international division and appointed Ruprecht von Buttlar to head the unit from Germany.

In addition to digital TV distribution, BarcoNet specializes in high-speed-data infrastructure, fiber-optic backbones and network management.
? From Kagan Broadband

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