Flash Networks buys Mobixell Networks as video optimization becomes industry priority

Flash Networks, a U.S.-Israeli provider of mobile Internet and optimization products, said it will acquire Mobixell Networks in a transaction slated to close by month's end.

The companies did not disclose the transaction's size. However, Globes said sources estimated the deal's worth at $10 million to $20 million.

According to Flash Networks, its acquisition of Mobixell "results in a combined market share larger than any other independent vendor, with hundreds of deployments, serving over 1 billion subscribers worldwide."

Flash Networks already services 600 million subscribers on its own. Its customers include top-tier mobile carriers such as Orange, SingTel Group, MTS, T-Mobile, South Korea Telecom and Telekom Austria Group.

In October, Mobixell announced that it had attained a 23 percent market share among independent mobile video optimization providers, based upon data provided by research firm Core Analysis. Mobixell has recently seen considerable growth in Asia-Pacific and Latin America. The vendor has deployments with Verizon (NYSE:VZ), Vodafone, Bharti, Orange, XLcom, TIM and Telefonica.

Video optimization is becoming a top priority for mobile operators as they wrestle with rising consumption. An Ericsson (NASDAQ:ERIC) Mobility Report issued in October estimated that around 35 percent of global data traffic was due to video during 2013, but that percent will balloon to more than 50 percent during 2019.

"As we are interested in extending our position in the mobile operator market, Flash Networks is committed to continuing support of Mobixell's solutions and customers," said Liam Galin, president and CEO of Flash Networks.

Flash Networks said its Harmony Mobile Internet Services Gateway sits at the network core to accelerate LTE transmissions by 50 percent and reduce web and video traffic data by 30 percent. Mobixell's flagship product, Seamless Access, enables mobile operators to manage, optimize, and monetize mobile data and video traffic.

Founded in 2000, Mobixell has offices in the United States, United Kingdom and Israel. Jewish Business News said Mobixell employs about 180 people.

For more:
--see this Flash Networks release
- see this Globes article
- see this Jewish Business News article

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Verizon spending millions on network upgrades to counter growth of video traffic
Network virtualization's fans urge carriers to embrace change
Allot buys video optimization specialist Ortiva Wireless
Jarich: Why MWC will be all about video optimization

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