Scopus Video Networks acquired by Harmonic for $5.62 per share

By Lisa Kerner

Charlotte, N.C., March 12 - Harmonic Inc. completed its acquisition of Scopus Video Networks Ltd., it was announced on Thursday.

The total enterprise value of the transaction is approximately $50 million, Harmonic said.

Each ordinary share of Scopus issued and outstanding has been automatically converted into the right to receive $5.62 in cash, subject to withholding, a Scopus news release stated.

According to a pre-ruling from the Israeli Tax Authority, Scopus shareholders will be subject to withholding tax at the rate of 25% with certain exceptions.

Harmonic agreed to take Scopus private for $5.62 cash per share in December. Scopus shareholders approved the merger in February.

Scopus shares ceased trading on Nasdaq and will be delisted.

Harmonic said it expects cost synergies of $8 million to $10 million on an annualized basis once Scopus becomes fully integrated into the company.

The transaction is expected to be accretive to Harmonic's non-GAAP earnings in 2009, the company said.

Scopus, located in Rosh Ha'ayin, Israel, develops and supports digital video networking, offering video gateways, encoders, decoders and network management products.

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.

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