ARC gets Russian R&D team with Alarity

ARC International has acquired Alarity Corporation, a privately held US multimedia company which has a team of 40 engineers based in St. Petersburg, Russia specialising in codec software, firmware, and advanced multimedia architectures.

The £2m acquisition includes all of Alarity’s employees and its vast library of optimized solutions for standard definition (SD) and HD video, hi-fidelity audio, imaging, DSP, and information security applications.

ARC has established a multimedia development centre in St. Petersburg, which will suport existing centres in Cambridge and St. Albans in the UK and in the US.

“The acquisition of Alarity supports ARC’s strategy of providing comprehensive, integrated SoC solutions for advanced multimedia applications. In engagements with major customers, Alarity has proven its ability to optimise algorithms, software, and system architectures for highly efficient and ultra-low power operations,” said Carl Schlachte, president and CEO of ARC International.

Alarity’s development team already has contracts with tier 1 customers creating multimedia solutions based upon ARC’s configurable processors and subsystems. It sepecialises in HD video and image processing, hi-fidelity audio algorithms, coding and compression, A/V pre- and post-processing, encryption, digital watermarking, and digital rights management.

All of these technologies are essential to create a complete next-generation system for HD DVD, BluRay DVD, next-generation iPTV, and HDTV broadcast standards.

The consideration will be £2m in cash.  An additional consideration of £900,000 will be paid over two and half years based upon completion of certain performance targets. The acquisition may have a cost impact of up to £450,000 on ARC’s financial year 2007 operations.


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