Harmonic wraps up $273M purchase of Omneon
Harmonic has completed its purchase of video production and playout vendor Omneon for $273 million.
The deal, which was first announced in May, included approximately $194 million in cash and approximately 17.1 million shares of Harmonic's common stock.
"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 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."
Harmonic said the transaction was expected to be neutral to its non-GAAP net income in 2010 and to be accretive to non-GAAP net income in 2011, excluding the amortization of intangibles and nonrecurring charges such as restructuring and transaction costs.
Due to the purchase accounting for the transaction, Harmonic said it couldn't estimate the impact on GAAP net income at this time, but it expects to report consolidated guidance when it reports its results for the third quarter of 2010 next month.
Omneon's customer base includes BBC, BSkyB, CBS, Comcast, Discovery Communications, EchoStar, NBC Universal, News Corp., Televisa, Turner Broadcasting System and Viacom.
Omneon has approximately 280 employees worldwide and is headquartered in Sunnyvale, Calif., with research and development facilities in Sunnyvale and Beaverton, Ore.
When the deal was first announced, Harmonic said most of Omneon's executive team, including founder Lawrence Kaplan, would join Harmonic, but Harmonic didn't provide an update on Omneon's employees in today's press release.
This past summer Harmonic moved its headquarters from Sunnyvale to San Jose in California.