Arris Digeo Acquisition Bears Fruit

Arris recently announced that it had started shipping its Arris Whole Home Gateway solution to Shaw in Canada (starting in Calgary). This solution includes a Gateway with Six HD tuners, a DOCSIS 3.0 modem, Ethernet Port, 500 GB Hard Drive, MoCA 1.1+ networking and DLNA. It uses Digeo’s Moxi interface which Arris acquired in September 2009 for about $20 million. The solution includes two boxes – the Whole Home DVR (branded as Shaw’s Gateway) for the first screen and Moxi Mate (branded as Shaw’s Total Home Portal) for each additional screen. While Arris provides an 802.11n WiFi option, Shaw did not include this.

Prior to the Digeo acquisition, Arris provided many infrastructure products, such as Cable Modem Termination Systems (CMTS) and Encoders (from the EGT acquisition) which were competitive with those provided by Cisco and Motorola. Arris also excelled at data-oriented customer premise equipment (CPE), including Cable Modems and E-MTA’s (Embedded Multimedia Terminal Adaptors) used to connect phones to a cable system. However, Arris lacked some credibility because they could not offer an end-to-end video solution because of a lack of an internal set-top box (STB) solution.

It is always good to see a strong company like Arris deliver on an acquisition with a strong design win like this one with Shaw, with 2.3 million cable customers (including 1.7 million digital customers and 1.8 million broadband customers).