September 16, 2010

Broadcasting & Cable

Harmonic Completes Its Acquisition of Omneon

$273 million deal creates major player across all part of content delivery chain

Transmission and compression vendor Harmonic Inc. has completed the acquisition of Omneon Inc. that it announced in May. The deal was valued at about $273 million.

Adding Omneon's strength in transmission servers and networked storage systems, strengthens Harmonic's position as a provider of equipment all across the content delivery and production chain, from ingest and editing to playout into the home. 

"By bringing together a powerful range of market-leading technologies that span content contribution through delivery, and leveraging strong relationships with content producers and service providers around the globe, Harmonic is now uniquely positioned as a global leader in video infrastructure for the digital media industry," said Patrick Harshman, President and CEO of Harmonic in a statement. "In combination with Omneon, we expect to deepen our relationships with global media companies, enabling them to create, package and deliver the next generation of video-centric media services."

The combined company, which is headquartered in San Jose California, has a customer base of over 2,000 customers in 100 countries.

In announcing the completion of the deal, Harmonic noted that the deal is expected "to be neutral to Harmonic's non-GAAP[Generally Accepted Accounting Principles] net income in 2010 and to be accretive to non-GAAP net income in 2011, excluding the amortization of intangibles and non-recurring charges such as restructuring and transaction costs."

Harmonic is expected to provide guidance on the impact of the deal on its GAAP net income when it reports results for the third quarter in October.