Harmonic Inc. (HLIT), a provider of video on-demand equipment, this afternoon said it has agreed to acquire Omneon, which like Harmonic is based in Sunnyvale, California, sells video servers, for $274 million in cash and stock. Omneon had 2009 revenue of about $105 million, two-thirds of that outside the U.S., with no single customer accounting for more than 10% of sales.
Terms call for Harmonic to pay $190 million in cash and 17.1 million in Harmonic shares. The company currently has 96.5 million shares outstanding. The deal is expected to close in Q3. Harmonic said the deal should be neutral to non-GAAP profits in 2010 and accretive in 2011.
Investors in Omneon include Accel Partners, Norwest Venture Partners, Advanced Technology Ventures, Invesco, Meritech Capital Partners, Intel Capital, Lucent Venture Partners, Centre Palisades Ventures, Ignite Group and J.P. Morgan Chase.
Meanwhile, HLIT reported Q1 sales of $84.8 million and profit of 6 cents a share; the Street had been expecting $85.6 million and 6 cents.
The company said that it expects Q2 and Q3 revenue combined, excluding Omneon, of $180 million to $190 million; the Street has been expecting $88.9 million for the June quarter.
HLIT in late trading is down 50 cents, or 7.5%, to $6.20.
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