Harmonic Inc. recently announced it will acquire the video networking software business of Entone Technologies Inc. The video service delivery company made its announcement the same day Cisco Systems Inc. announced plans to acquire VoD server company Arroyo Video Solutions Inc.
Entone’s software solutions provide VoD, network personal video recording (nPVR), time-shifted television and targeted advertisement insertion. The combination of Harmonic's video headend, edge and access network solutions and Entone's on-demand software, will allow Harmonic to provide cable, satellite and telco/IPTV service providers a delivery system for the next generation of both broadcast and personalized IP-delivered video services.
Harmonic is set to purchase Entone for $45 million, which comprises $26 million in cash and the value of approximately 3.54 million shares of Harmonic common stock. In addition, Harmonic will assume certain liabilities of $1.5 million and invest $2.5 million in the form of a convertible note in Entone's CPE business, which will be spun out to Entone's existing stockholders immediately prior to the closing of the acquisition.
“Our industry is in the midst of an exciting and fundamental transformation to an increasingly on-demand video experience," said Patrick Harshman, president and CEO of Harmonic. "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.”
The merger is expected to close in October.
Harmonic Inc. www.harmonicinc.com
