Video technology company Harmonic is to sell its cable access products business to Aurora Networks for US$46 million (€34 million) in cash.
The deal is expected to close by the end of the first quarter. Harmonic said the decision reflected its commitment to the video production and playout, video processing and cable edge product areas, where it enjoys a leading market position, and the limited synergies between the cable access line and other product areas. The cable access portfolio includes optical transmitters, amplifiers, receivers and nodes.
Harmonic’s board has approved an increase to its current share repurchase program to include the net, after-tax cash proceeds from this transaction of approximately US$35 million, contingent upon its closing.
The sale of the cable access business enables us to sharpen our focus on our largest growth opportunities,” said Patrick Harshman, Harmonic president and CEO. “Cable access was Harmonic’s lowest margin product line, and through this transaction and the increase in our authorized share repurchase program, we will continue to drive growth in our core markets, expand our gross margin, reduce our outstanding shares, and position our business for stronger long-term earnings.”