Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Harmonic to acquire Thomson Video Networks

Advanced video compression solutions provider Thomson Video Networks – currently backed by the private equity partner Edmond de Rothschild Investment Partners – has received a binding offer from video delivery infrastructure specialist Harmonic to acquire 100 per cent of the company for $75 million (€69m).

The combined company would establish Harmonic with clear market share leadership in video infrastructure for the world’s leading content and service providers, powered by the industry’s largest video-focused R&D, service and support teams.

“This combination of Harmonic and TVN will, if completed, set the bar for video innovation globally,” said Patrick Harshman, President and CEO of Harmonic. “The combined product portfolios, R&D teams and global sales and service personnel would allow us to accelerate innovation for our customers while leveraging greater scale to drive operational efficiencies. At a time of great change for video content and service providers, the proposed transaction would improve Harmonic’s position as an exceptionally reliable source of innovative video technology that enables delivery and monetization of amazing new video experiences for the consumer.”

Headquartered in Rennes, France, TVN’s regional strength in APAC, EMEA and LATAM would further enhance Harmonic’s global footprint. With less than 50 per cent customer overlap between the companies, TVN’s content and service provider relationships are expected to open significant opportunities for the joint portfolio of solutions.

The products and solutions of the two companies are deployed with over 5,000 content and service provider customers in over 100 countries globally. The combined company would have a video-focused global R&D organisation of more than 600 engineers, a global service organisation of more than 300 professionals and a network of over 300 channel partners.

For fiscal 2014, TVN reported revenue of  €71 million, as presented in TVN’s audited financial statements prepared in accordance with French GAAP.

The proposed transaction is anticipated to be accretive to Harmonic’s non-GAAP net income in the first year after closing, exclusive of the amortisation of intangibles and non-recurring charges.

The proposed transaction is consistent with Thomson Video Networks’ strategy to accelerate its development by giving the company greater global scale and resources needed to drive more value and continuous innovation to the benefit of its customers.

Consequently, in reply to this offer, Harmonic has been granted exclusivity by Thomson Video Networks’ shareholders while Harmonic secures adequate financing for the proposed transaction. The transaction is expected to close in Q1 2016, subject to French works council consultation process and the acceptance of Harmonic’s acquisition offer by the shareholders of Thomson Video Networks , as well as receipt of regulatory approvals and other customary closing conditions.

The pair say the combination would create a clear market leader in video delivery, capitalising on both companies’ solid foundations with their ‘premium video experience’ approach and their respective geographical, R&D and customer services strengths.

You must be logged in to post a comment Login