Scopus Video Networks, a provider of digital video networking products, has entered into a non-binding term sheet to acquire the digital video and streaming business of Optibase, the company's principal shareholder, for stock. Optibase, based in Herzliya, Israel, provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators.

"The acquisition of the digital video and streaming business of Optibase is a positive step for Scopus," commented Dr. Yaron Simler, CEO of Scopus. "We have identified what we believe to be potential synergies and cost savings associated with this transaction. In addition to our current portfolio, Optibase's products extend the breadth of our offering to our customers, opening up new markets for Scopus. Finally, it should enable us to become a more prominent player in the digital video networking market."

Dr. Simler concluded, "While there are still a few major steps ahead, this is an important development that we expect will accelerate the growth of our business in 2008 and beyond.

Financial details of the agreement are available here.