Harmonic to acquire Scopus
Jan 4, 2009 8:37 AM
Harmonic has signed a definitive agreement to acquire Scopus Video Networks, a global provider of digital video networking solutions. The acquisition will extend Harmonic's worldwide customer base and strengthen its market and technology leadership, particularly in international video broadcast, contribution and distribution markets.
Under the terms of the 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. The proposed acquisition is expected to close in the latter part of the first quarter of 2009. Harmonic has received voting agreements supporting the proposed acquisition from shareholders representing approximately 50 percent of Scopus' outstanding shares. Harmonic expects to realize cost savings upon full integration of Scopus of $8-10 million on an annualized basis.
For the first nine months of 2008, Scopus reported revenues of $55.4 million, an increase of 35 percent over the comparable period of the prior year. Approximately 79 percent of these revenues were outside the United States, with no single customer representing more than 10 percent of total revenues. Scopus has approximately 300 employees worldwide.
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