Harmonic quits cable access business
Harmonic Inc. has reached an agreement to sell its cable access business to Aurora Networks, Inc. for $46 million in cash. The transaction is subject to customary closing conditions and is expected to be completed by the end of the first quarter of 2013.
"Acquiring the assets of Harmonic's optical transport business extends our Access leadership position by adding to our footprint within the cable industry," said Guy Sucharczuk, chairman, president and CEO of Aurora Networks. "We are dedicated to the evolution of cable infrastructure. This strategic move is an opportunity for us to further accelerate our innovations, continue to grow and ensure that the networks of current customers and expanded customer base from Harmonic can meet challenges today and well into the future."
Harmonic’s strategic decision to divest the cable access business reflects the company's commitment to the video production and playout, video processing, and cable edge product areas, where it currently holds market share leadership. In contrast, Harmonic is not the market leader in the cable access product area, and there is limited strategic synergy between cable access and the company’s other higher growth product lines. The cable access portfolio includes optical transmitters, amplifiers, receivers and nodes.