Harris Acquires Traffic Vendor
Melbourne, Fla.-based Harris Corporation has agreed to acquire privately held Optimal Solutions Inc. (OSi), a provider of Windows-based broadcast sales, traffic and billing software, for $32 million in cash. It plans to integrate OSi’s traffic software into its comprehensive “H-Class” software solution for broadcast operations.
OSi, which provides software to over 350 call-letter broadcast stations in North America, was founded in 1996 and is based in Kansas City, Mo. OSi’s revenue for the 12 months ended March 31 was approximately $5 million, and the company currently has approximately $27 million in revenue under contract.
The Harris acquisition of OSi is subject to customary closing conditions, and OSi's shareholders may receive additional payments over the next three years if certain operating goals are achieved. The transaction is expected to close in early May, and is expected to be neutral to Harris' fiscal year 2006 earnings per share, excluding acquisition-related charges, and accretive in fiscal year 2007.
"The acquisition of OSi will further strengthen our portfolio and commitment to provide Total Content Delivery’ solutions to the industry," says Howard Lance, chairman, president and CEO of Harris Corporation. "OSi expands our capabilities in enterprise-wide software for managing and scheduling advertising and programming for broadcasters, and complements the Harris next-generation H-Class platform."