Shares in set-top box maker Pace Micro Technology soared more than 60% after the company announced it had won a much-expanded order from US cable group Comcast.
Pace said the deal to provide Comcast, America's largest cable operator, would cover a variety of receivers over three years, and was worth between $375m and $550m.
Under the agreement Pace and Comcast will jointly fund future technology development using Pace's R&D team. Comcast—which already had a much smaller order book with Pace—also gains a licence to use Pace's EngineWare software platform in the North American cable market.
Pace chief executive John Dyson said: "We are delighted to have secured this new agreement with Comcast, the world's largest pay-TV operator.
"In addition to gaining a valuable set-top box supply commitment, we have demonstrated that Pace's engineering excellence can support important pay-TV operators in the development and delivery of their digital set-top box supply strategy."
Pace said the deal vindicated its investment in the US over the past six years.
News of the deal was warmly received in the City. ABN Amro analyst Sue Cox told the FT: "The fact that the world's biggest pay-TV operator in the world's biggest pay-TV market is committing to Pace is a big endorsement of the technology. It gives [Pace] a lot of credibility."
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