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Harmonic to Acquire Rhozet

Harmonic Inc., a provider of broadcast and on-demand video delivery solutions, has agreed to acquire Rhozet Corp., a privately-held company based in Santa Clara, Calif., for $15.5 million. The purchase price is comprised of cash and company stock valued at about 1.1 million shares, according to the agreement.

Rhozet offers software-based universal transcoding solutions that facilitate the creation of multiformat video for Internet, mobile and broadcast applications. The addition of Rhozet's technology will enable Harmonic's existing broadcast, cable, satellite, and telco customers to create and deliver high-quality Internet and mobile video programming. It is also expected to expand Harmonic's presence into the online video service provisioning market, where Rhozet's solutions are used by leading Web video content providers including, MSN and Yahoo!.

The Rhozet product line includes Carbon Coder, a standalone software transcoding application, and Carbon Server, an enterprise-level distributed transcoding management application. This highly scalable solution is designed to allow users to start with a single system that can be expanded to a large transcoding server farm, and includes features such as load balancing and failover protection.

"Harmonic brings unique experience, strength and innovation in the broadcast, cable, satellite, and telco markets," said David Trescot, CEO of Rhozet. "The combination of Rhozet's transcoding software and Harmonic's on-demand and stream processing products will further streamline the creation and intelligent distribution of video for any device."

The acquisition is subject to closing conditions and is expected to close by the end of July.