Harmonic makes Thomson Video Networks buy-out offer | Online Video | News | Rapid TV News
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Video compression company Thomson Video Networks (TVN) is mulling a binding offer from delivery infrastructure giant Harmonic to acquire 100% of its assets.

Backed by private equity partner Edmond de Rothschild Investment Partners (EdRIP), TVN has an existing strategy to accelerate its development by giving the company greater global scale and resources. This, it claims, will drive more value and continuous innovation to the benefit of its customers. Harmonic believes that TVN's regional strength in APAC, EMEA and LATAM would further enhance Harmonic's global footprint. With less than 50% customer overlap between the companies, TVN's content and service provider relationships are expected to open significant opportunities for the joint portfolio of solutions.

Under the terms of the buy-out offer, which is in the form of a "put" option agreement subject to the selling shareholders exercising the put option following a consultation process with TVN's employee works council in France, Harmonic would acquire all of TVN for approximately $75 million in cash plus up to $15 million in post-closing adjustments.

In reply to the offer, TVN shareholders have granted Harmonic exclusivity while it secures adequate financing for the proposed transaction. The two companies believe that by joining forces they could create a clear market leader in video delivery, capitalising on their foundations with their premium video experience approach and their respective geographical, R&D and customer services strengths.

"This combination of Harmonic and TVN will, if completed, set the bar for video innovation globally," commented Patrick Harshman, president and CEO of Harmonic. "The combined product portfolios, R&D teams and global sales and service personnel would allow us to accelerate innovation for our customers while leveraging greater scale to drive operational efficiencies. At a time of great change for video content and service providers, the proposed transaction would improve Harmonic's position as an exceptionally reliable source of innovative video technology that enables delivery and monetisation of amazing new video experiences for the consumer."

Any transaction is expected to close in Q1 2016, subject to French works council consultation process and the acceptance of Harmonic's acquisition offer by TVN shareholders, as well as receipt of regulatory approvals and other customary closing conditions.