Harmonic Completes $273 Million Omneon Acquisition
SUNNYVALE, CALIF.: Video processor Harmonic today announced that it has completed the acquisition of server specalist Omneon. The deal closed for around $194 million in cash and approximately 17.1 million shares of Harmonic (NASDAQ: HLIT) common stock, for a value of $273 million.
“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 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.”
Harmonic said transaction is expected to be neutral to it’s non-GAAP 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. A reasonable estimate of impact cannot be provided yet, but Harmonic said it “expects to report consolidated guidance when it reports its results for the third quarter of 2010 in October.”
Harmonic announced its agreement to buy Omneon last May. Both companies are headquartered in Silicon Valley just minutes apart. The companies had combined revenues last year of $425 million. Harmonic posted $320 million; Omneon, $105 million. Their combined customer base is 2,000 across 100 counties. Together, they employ more than 1,100 people.
Shares of HLIT ended the trading day at $6.92, up 9 percent year-to-date.
-- Deborah D. McAdams
May 6, 2010: “Harmonic Agrees to Buy Omneon for $274 Million”
There was no mention of layoffs in the Harmonic’s announcement. It said only that “most of the Omneon executive management team is expected to join Harmonic at closing,” including Lawrence Kaplan, a founder of Omneon, and Suresh Vasudevan, its CEO.
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