Harmonic acquires Scopus
Harmonic has announced it is to acquire Scopus Video Networks in a deal worth $51 million. The agreement will further extend Harmonic’s influence into video broadcast, contribution and distribution markets. It also represents Harmonic’s diversification strategy that previously saw the acquisition of Rhozet and its carbon coder video transcoding technology.
The Scopus transaction is expected to close towards the end of the first quarter of 2009, though will need regulatory approval and shareholder agreement. Already Harmonic has received voting agreements that represent 50% of Scopus’ outstanding shares.
Harmonic has acknowledged there will be savings from the bringing together of the two companies that have been estimated at between $8 and $10 million.
Patrick Harshman, President and Chief Executive Officer of Harmonic said the acquisition also brought opportunities for expanded research and development. “Like Harmonic, Scopus has strong gross margins and a proven track record of innovation and growth. By combining our two companies, we see significant opportunities for product, sales and cost synergies,” he said.
“Harmonic brings its powerful customer relationships, brand reputation, technology leadership and financial resources. Scopus brings its highly skilled employees, proven distribution channels, strong customer relationships and sales momentum in emerging international markets,” added Yaron Simler, Chief Executive Officer of Scopus.
In the first nine months of 2008, Scopus reported revenues of $55.4 million, an increase of 35% on 2007. Around 79% of revenues came from outside the United States.