Harmonic closes purchase of Omneon
US-based video solutions provider Harmonic has acquired privately-held video production and playout solutions firm Omneon for an enterprise value of US$273m.
Harmonic paid about US$194m and issued around 17.1 million common shares to Omneon’s…
US-based video solutions provider Harmonic has acquired privately-held video production and playout solutions firm Omneon for an enterprise value of US$273m.
Harmonic paid about US$194m and issued around 17.1 million common shares to Omneon’s shareholders, representing an enterprise value of about $273 million, based on the value of Harmonic’s common stock as set forth in the definitive acquisition deal and net of Omneon’s cash balances.
The selling shareholders comprise a number of technology focused venture capital firms including among others Accel Partners, Norwest Venture Partners, Advanced Technology Ventures, INVESCO Private Capital, Meritech Capital and Intel Capital as well as JPMorgan Chase.
“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 videocentric media services,” said Patrick Harshman, president and CEO of Harmonic, in a statement.
The transaction is expected to be neutral to Harmonic’s non-GAAP net income in 2010 and to be accretive to non- GAAP net income in 2011, excluding the amortisation of intangibles and non-recurring charges such as restructuring and transaction costs.
For the year ended December 31, 2009, Omneon’s revenues were approximately US$105m, of which 67% were outside the United States, with no single customer representing more than 10% of total revenue. Omneon’s gross margin was 58% in 2009.
Privately-held Omneon focuses on playout and production servers used for transmission and production, with a product portfolio focused on video-optimised storage systems and in media management software. Customers include satellite providers such as DISH Network and Sky, networks like Discovery and A&E Television, and broadcasters such as NBC
and the BBC.
BofA Merrill Lynch acted as exclusive financial adviser to Harmonic on the transaction.
