ActiveVideo, provider of cloud-based television applications, has acquired rival Avinity Systems for an undisclosed sum. Together, the two companies will provide interactive TV service to over 5 million homes by the end of the year, reports VentureWire. Both deploy these services through cable providers like oceanic Time Warner Cable, Grande Communications and European Tele2.

The acquisition will give Los Gatos, Calif.-based ActiveVideo pre-forged partnerships with content providers and companies that make relevant components. Before, it had the money and not the connections. It had raised $200 million in capital from Adelphia Communications, Liberty Media, Motorola, Shaw Communications, TV Guide and Lauder Partners.