US-based video networking company Harmonic has signed an agreement to acquire Israel’s Scopus Video Networks.
Under the terms of the definitive agreement, which has been approved by the board of directors of both companies, Harmonic will pay $5.62 in cash for each outstanding share of Scopus, representing an enterprise value of approximately $51 million, net of Scopus’ cash and short-term investments.
Harmonic has received voting agreements supporting the proposed acquisition from shareholders representing approximately 50% of Scopus’ outstanding shares. The proposed acquisition is expected to close in the first quarter of 2009.
Harmonic provides video delivery services to cable, satellite, telco, terrestrial and wireless operators. It develops IP-centric video compression, stream processing, edge, broadband access, and asset and network management software.
Scopus’ digital video networking systems include intelligent video gateways, encoders, decoders and network management products that support digital television, standard and high definition TV, live event coverage and content distribution. The company has posted record revenue of $19.9 million for the third quarter ended September 2008.
Patrick Harshman, president and CEO of Harmonic, said: 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 R&D capability.
