Pace announces that Pace France has signed a conditional agreement to acquire Bewan Systems, the Paris-based IP and cable gateways specialist. The consideration for the acquisition, part of which is subject to achievement of earn out targets, will be payable in cash and will not exceed €12.5 million. The transaction is expected to be completed during the second quarter of 2010.

Bewan’s residential gateway capabilities – including expertise in xDSL and cable DOCSIS 3.0 IP connectivity technologies - will combine with Pace’s existing gateway business, enabling Pace to offer converged gateway and digital TV solutions to payTV customers. Additionally, the strong relationships Bewan has with several customers in Europe, North Africa and the Middle East will further widen Pace’s growing global presence.

Pace already has an excellent pedigree in IP connectivity; Pace’s hybrid devices include the Le Cube box for French operator, CANAL+ - Europe’s first satellite / IP hybrid set-top box to use the Ethernet port for video-on-demand services - and a hybrid HD PVR for Viasat in Scandinavia and the Baltics. Pace has also developed both set-top boxes for the UK’s BT Vision service, including the recently launched Vision+. Pace has demonstrated early leadership in the nascent convergence market – our Home Content Sharing product in the US was the first commercially available platform of its type.