By Lisa Kerner
Charlotte, N.C., Dec. 23 - Harmonic Inc. announced it agreed to acquire Scopus Video Networks Ltd. for $5.63 cash per Scopus share.
The transaction, with an enterprise value of about $51 million, is expected to close in the latter part of the first quarter of 2009 pending shareholder approval, a Harmonic news release said.
Harmonic said it has received voting agreements in support of the transaction from shareholders representing roughly 50% of Scopus' outstanding shares.
Once Scopus is fully integrated, Harmonic said it expects to realize cost synergies of $8 million to $10 million with the transaction accretive to Harmonic's non-GAAP earnings in 2009.
"This acquisition extends Harmonic's diversification strategy, providing us with an expanded international sales force and customer base, particularly in video broadcast, contribution and distribution markets, as well as complementary video processing technology and expanded research and development capability," Harmonic president and chief executive officer Patrick Harshman said in the release.
Harmonic designs, manufactures and sells video products and system solutions that enable service providers to deliver broadcast and on-demand services. The company is based in Sunnyvale, Calif.
Scopus, located in Rosh Ha'ayin, Israel, develops and supports digital video networking, offering video gateways, encoders, decoders and network management products.
| Acquirer: | Harmonic Inc.
|
| Target: | Scopus Video Networks Ltd.
|
| Announcement date: | Dec. 23
|
| Transaction total: | $51 million
|
| Price per share: | $5.63
|
| Expected closing: | First quarter of 2009
|
| Stock price for target: | Nasdaq: SCOP: $3.32 on Dec. 22
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
