Tandberg Television, the European video compression and delivery company, announced that it has acquired N2 Broadband, an Atlanta-based vendor of on-demand entertainment systems, for about $118 million in stock and cash.

Reggie Bradford, president and CEO of N2 Broadband, will become president of Tandberg, and the combined entity will be based in Atlanta, Ga., with a development facility in Denver and other offices in the U.S.

Company officials said the deal reflects a growing need among service providers of all types for TV compression and delivery solutions.

"The N2 Broadband acquisition significantly accelerates the growth opportunities for both companies,” said Eric Cooney, preseident and CEO of Tandberg, in a statement. “This acquisition is central to our strategic plan, particularly as the North American market represents the largest growth opportunity for Tandberg Television over the short and medium term."