Video-service-delivery vendor Harmonic entered into a definitive agreement to acquire the video-networking-software business of Entone Technologies.
The $45 million deal will be made up of $26 million in cash and the value of approximately 3.54 million shares of Harmonic common stock.
Harmonic will also assume certain liabilities of $1.5 million and invest $2.5 million in the form of a convertible note in Entone's consumer-premise-equipment business, which will be spun out to Entone's existing stockholders immediately prior to the closing of the transaction.
“By bringing together Harmonic's market-leading encoding and stream-processing products and Entone's innovative software suite for managing and streaming personalized video content, we will create a powerful and integrated solution for the emerging on-demand network,” Harmonic CEO Patrick Harshman said in a prepared statement.
“In the cable and satellite markets, where Harmonic enjoys strong customer relationships and a large installed base, this comprehensive solution will be a great benefit to our customers as they expand and extend their offerings with new on-demand services,” he added. “In IPTV, where both Harmonic and Entone have established early leadership positions in our respective solution areas, the combination of our businesses creates a clear industry leader.”