Harmonic and Omneon have announced the signing of a definitive agreement pursuant to which Harmonic would acquire Omneon for an enterprise value of approximately $274 million in cash and Harmonic stock. The proposed acquisition would combine Harmonic’s video delivery infrastructure with Omneon’s technology for the production, management and distribution of digital media.
“The dramatic growth of video delivery over broadband and wireless networks is blurring traditional boundaries between content producers and service providers," said Patrick Harshman, president and CEO of Harmonic, in a statement. "We believe that our combined company will be uniquely positioned to capitalize on these trends and to accelerate revenue growth.”
Omneon’s customer base includes the BBC, BSkyB, CBS, Comcast, Discovery Communications, Echostar, NBC Universal, News Corporation, Televisa, Turner Broadcasting System, Viacom and many other leading media companies worldwide.
For the year ended December 31, 2009, Omneon’s revenues were approximately $105 million, of which 67 percent were outside the United States. Omneon has approximately 280 employees worldwide, and is headquartered in Sunnyvale, California, with research and development facilities in Sunnyvale and Beaverton, Oregon.?
The proposed acquisition is subject to customary closing conditions and regulatory approvals, and is expected to close in the third quarter of 2010.