Aurora Networks to acquire cable access business of Harmonic
Feb 20, 2013 (Datamonitor Financial Deals Tracker via COMTEX) --
Aurora Networks, Inc. has entered into an agreement to acquire the cable access business of Harmonic, Inc., a provider of video delivery infrastructure for emerging television and video services, for $46 million in cash. Both the companies are based in the US.
Aurora Networks is a developer and manufacturer of optical transport systems.
The cable access business generated $52.9 million of net revenue with gross margin of approximately 30% in 2012.
Jefferies & Company, Inc. is acting as financial advisor to Harmonic.
The transaction is expected to be completed by the end of the first quarter of 2013.
Deal Value (US$ Million) 46
Deal Type Acquisition
Sub-Category Asset Purchase
Deal Status Announced: 2013-02-19
Target (Company) Harmonic, Inc. - Cable Access Business
Acquirer (Company) Aurora Networks, Inc.
Vendor (Company) Harmonic, Inc.
The acquisition will increase Aurora Networks' market share in the optical transport market by increasing its installed base for next-generation service-providing products and creating long-term strategic growth opportunities.
The acquisition will drive growth in Harmonic's core markets, expand its gross margin, reduce its outstanding shares, and position its business for long-term earnings.
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