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Harmonic Completes Acquisition of Omneon - Broadcasting & Cable

Harmonic Completes Acquisition of Omneon

$273 million deal creates major player across all part of content delivery chain
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Transmission
and compression vendor Harmonic Inc. has completed the acquisition of
Omneon Inc. that it announced in May. The deal was valued at about $273
million.

Adding Omneon's strength in transmission servers and
networked storage systems, strengthens Harmonic's position as a provider
of equipment all across the content delivery and production chain, from
ingest and editing to playout into the home. 

"By bringing
together a powerful range of market-leading technologies that span
content contribution through delivery, and leveraging strong
relationships with content producers and service providers around the
globe, 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 a statement. "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."

The combined
company, which is headquartered in San Jose California, has a customer
base of over 2,000 customers in 100 countries.

In announcing the
completion of the deal, Harmonic noted that the deal is expected "to be
neutral to Harmonic's non-GAAP[Generally Accepted Accounting Principles]
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."

Harmonic is expected to
provide guidance on the impact of the deal on its GAAP net income when
it reports results for the third quarter in October.

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