Amino Technologies has signed a sales and purchase agreement for the acquisition of Tilgin AB's IPTV set-top box division in a deal valued at £2.5m.

Tilgin IPTV has been acquired for an initial price of £2.5m on a debt-free basis, payable in cash on completion. Additionally, there is a capped cash earn-out mechanism offering an additional maximum consideration of approximately £1.25m based on unit sales above 175,000 in financial year 2009. 

The Cambridge-based broadband network software and systems group will finance the deal from cash resources which at 31 May 2008 stood at £19m.

The purchase of Tilgin which is based near Stockholm will bring to Cambridge based Amino an MPEG-4 HD IPTV set-top box business. The acquisition will also give Amino access to additional middleware solutions - such as Ericsson and Nokia Siemens Networks - as well as extending the Group's customer reach.

Of particular interest is the company's set-top box platform based on STMicroelectronics technology.

"The acquisition of Tilgin IPTV demonstrates further strategic growth from Amino. Amino's strong market position makes it the ideal consolidator in a market which is both growing and maturing.  We are confident that the acquired business will offer incremental profits for the enlarged Group as we leverage their portfolio through our stronger global distribution channels," said Keith Todd, Amino's chairman.

Completion of the acquisition is expected to occur on 1 December 2008.