Espial Announces Agreement to Acquire Whole Home Solution Platform from ARRIS

Espial to gain end-to-end, cloud-hosted video service;

ARRIS will continue providing media gateways, media players,
support and solution delivery in collaboration with Espial

OTTAWA, Ontario–(BUSINESS WIRE)–Transforming the viewing experience worldwide, Espial today announced an
agreement to acquire ARRIS’s Whole Home Solution (WHS) platform.

The transaction will include:

  • WHS infrastructure, client and server software solutions
  • A talented team of WHS development and operations personnel, primarily
    located in Kirkland, Washington
  • A 24x7x365 Network Operations Center (NOC) and two WHS cloud data
    center operations (geo redundant)
  • ARRIS will continue providing media gateways, media players, support
    and solution delivery

Espial will support current – and look to accelerate future – roadmaps
for more than 40 WHS service provider customers spanning the US, Canada,
and Latin America.

Terms and conditions of the pending acquisition were not disclosed. The
transaction, which is subject to customary closing conditions, is
expected to close in Q3, 2016.

Following this transition, ARRIS will continue to partner with Espial to
support WHS with joint integration and co-marketing activities. The two
companies also intend to establish a reseller agreement. Espial and
ARRIS have a long history of successfully working together, with their
most recent collaboration – for Portugal’s
NOS
– marking Europe’s first RDK 4K commercial launch earlier this
month

Executive Quotes

“WHS expands our solution portfolio with a cloud-hosted
Video-as-a-Service platform that is complimentary to and will leverage
Espial’s current solutions for next-generation IP video services,” said
Jaison Dolvane, CEO, Espial. “By driving service velocity and innovation
for our service provider customers, we expect to help them improve
subscriber satisfaction, reduce churn and increase revenue. Espial gains
a broad base of new customer relationships and further scales our
world-class integration, operations, and software development teams. We
look forward to collaborating with ARRIS to enhance the Whole Home
Solution, strengthen support, and expand the customer base going
forward.”

“Combining the WHS technology and ARRIS team with Espial will broaden
the capability of the overall organization and accelerate the pace of
innovation. This speed is needed to meet increasing customer and
consumer demand. ARRIS will continue to focus our R&D investment on the
greater broadband and video ecosystem, dedicated to enabling next-gen
entertainment and communication experiences that are connected and
personalized,” said Bruce McClelland, President Network & Cloud and
Global Services, ARRIS. “We will work closely with Espial to make this a
seamless experience for our customers, and we will partner with Espial
to support WHS, including a strong roadmap of new innovative devices. We
believe this signifies our confidence in Espial’s value proposition for
WHS customers, employees, and consumers.”

Customer Quotes

“ARRIS selected a strong partner in Espial to advance the WHS,” said
Cash Hagen, Chief Technology Officer, WOW! Internet, Cable & Phone.
“Espial’s solutions for next-generation IP video combined with the
cloud-hosted WHS will help WOW continue delivering market leading video
services to our subscribers. We’re excited about the future of the WHS
solution and look forward to working with Espial and ARRIS to enhance it
further.”

“The WHS addresses important needs of Comporium’s subscribers, but the
competition we face is escalating rapidly,” said Jack Holladay,
Executive Vice President, Technology. “We believe the combination of
Espial and ARRIS will bring both speed and competitive advantage to
Comporium’s video offering going forward.”

About Whole Home Solution (WHS)

The Whole Home Solution is an end-to-end, turn-key IP Video solution.
WHS enables service providers to deliver feature-rich video and
telephony services, multi-room advanced DVR services, Wi-Fi®, DOCSIS®,
and other services. Subscribers can access an extended range of content
and TV everywhere options, as well as rich personalized experience. The
ARRIS Whole Home Solution products are available on ARRIS DCX-3635
Gateways, the IP Media Player IP815, and Media Player MP2050 and MP2150.

About Espial (www.espial.com)

With Espial, video service providers create responsive and engaging
subscriber viewing experiences incorporating powerful content discovery
and intuitive navigation. Service providers achieve ‘Web-speed’
innovation with Espial’s flexible, open software leveraging RDK and
HTML5 technologies. This provides competitive advantage through an
immersive and personalized user experience, seamlessly blending advanced
TV services with OTT content. With customers spanning six continents,
Espial is headquartered in Ottawa, Canada, has R&D centers in Montreal,
Silicon Valley, Cambridge UK, and Lisbon, and sales/support offices in
N. America., Europe and Asia. For more information, visit www.espial.com.

About ARRIS (www.arris.com)

ARRIS International plc. (NASDAQ:ARRS) is a world leader in
entertainment and communications technology. Our innovations combine
hardware, software, and services across the cloud, network, and home to
power TV and Internet for millions of people around the globe. The
people of ARRIS collaborate with the world’s top service providers,
content providers, and retailers to advance the state of our industry
and pioneer tomorrow’s connected world. For more information, visit www.arris.com.

Forward Looking Statements

This press release contains information that is forward looking
information with respect to Espial within the meaning of Section
138.4(9) of the Ontario Securities Act (forward looking statements) and
other applicable securities laws. In some cases, forward-looking
information can be identified by the use of terms such as “may”, “will”,
“should”, “expect”, “plan”, “anticipate”, “believe”, “intend”,
“estimate”, “predict”, “potential”, “continue” or the negative of these
terms or other similar expressions concerning matters that are not
historical facts. In particular, statements or assumptions about,
perceived future benefits and synergies of the proposed acquisition and
possible new customer and partner relationships, our position or ability
to capitalize on such perceived benefits and synergies, existing or
future opportunities for the company and products, execute on new market
opportunities, maintain existing Whole Home Solution user base and
secure new customer wins, and any other statements regarding Espial’s,
Arris’ or their customers’ objectives (and strategies to achieve such
objectives), future expectations, beliefs, goals or prospects, are or
involve forward-looking information.

Forward-looking information is based on certain factors and assumptions.
While the company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward-looking information, by its nature necessarily involves known
and unknown risks and uncertainties. A number of factors (many of which
are beyond our control and current expectation or knowledge) could cause
actual results to differ materially from those in the forward-looking
statements or could cause our current objectives and strategies to
change, including but not limited to:

  • our ability to complete the proposed acquisition (which is subject to
    conditions beyond Espial’s control) and successfully integrate the
    Whole Home Solution product line and associated Arris personnel into
    Espial operations;
  • Our ability to capitalize on the perceived benefits and synergies of
    the proposed acquisition;
  • Our ability to maintain Whole Home Solution user base and supply
    existing and new customers and partners with our products and
    services, including Whole Home Solution, and avoid being displaced by
    competitive offerings;
  • our ability to effectively grow our integration and support
    capabilities, execute on market opportunities, develop our
    distribution channels and generate increased demand for our products;
  • economic conditions and technological change; and
  • unanticipated changes in our costs, regulatory changes or litigation.

Additional risks and uncertainties affecting Espial can be found in
Management’s Discussion and Analysis of Results of Operations and
Financial Condition and its Annual Information Form for the fiscal years
ended December 31, 2014 and 2015 on SEDAR at www.sedar.com.
If any of these risks or uncertainties were to materialize, or if the
factors and assumptions underlying the forward-looking information were
to prove incorrect, actual results could vary materially from those that
are expressed or implied by the forward-looking information contained
herein and our current objectives or strategies may change. Espial
assumes no obligation to update or revise any forward looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. Readers are cautioned not to place
undue reliance on these forward-looking statements that speak only as of
the date hereof.

Contacts

Espial:
Kirk Edwardson, +1 613-301-3423
Director of
Marketing
kedwardson@espial.com
or
ARRIS:
Jeanne
Russo, +1 215-323-1880
Global Strategic Communications
jeanne.russo@arris.com