Harmonic has successfully completed the sale of its video business to MediaKind for US$145 million in cash. The purchase consideration is subject to net working capital and other customary post-closing adjustments.
The transaction marks a defining milestone in the company’s strategic transformation into a leading pure-play broadband innovator and underscores its commitment to maximising lasting shareholder value.
The divestiture of the video business accelerates Harmonic's long-term growth strategy by concentrating the company's resources, capital and operational expertise on its virtualised broadband segment, the fastest-growing business within its portfolio.
This transaction also delivers a significant capital infusion to Harmonic, strengthening the company’s balance sheet and providing additional financial flexibility to invest in innovation, further expand its customer base and pursue growth opportunities in the broadband industry.
“The completion of this transaction is a pivotal moment for Harmonic,” said Nimrod Ben-Natan, President & CEO of Harmonic. “We now turn our full focus and capital toward broadband, where our established footprint with the world's largest operators positions us as a leader in the industry's shift to virtualised software-defined broadband networks powered by intelligence capabilities.
“We are proud of the exceptional work our video business has accomplished and are confident they will continue to deliver the same innovation and dedication as a part of MediaKind.”
As a result of the deal, Harmonic’s video employees will also join MediaKind, as Allen Broome, CEO of MediaKind explained, “Bringing these two teams together under one roof is a powerful moment, creating a stronger, more capable partner for the media industry at a time of significant change.
“Outstanding technology, deep expertise, and a shared obsession with customer success — we’re ready to build something exceptional.”
