Proposed Acquisition Establishes Clear and Unrivalled Video Delivery Market Leader and Provides Unique Opportunity for Thomson Video Networks to Accelerate Global Growth
RENNES, France – Dec. 17, 2015 – Thomson Video Networks, a global leader in advanced video compression solutions has announced that the company has received a binding offer to be acquired by Harmonic (NASDAQ: HLIT), the worldwide leader in video delivery infrastructure. In the proposed transaction, combining the companies would establish a clear market leader in video delivery, building on their solid foundations in delivering a premium video experience using market-leading flagship products such as the Thomson Video Networks ViBE ® encoding family.“I am very pleased to share the news of our pending acquisition with our teams, customers, and partners,” said Christophe Delahousse, president, Thomson Video Networks. “This is a truly unique opportunity for Thomson Video Networks to accelerate its growth, giving us a more global scale and the resources we need to drive more value and continuous innovation to benefit our customers. And, very importantly, our employees will benefit from substantial opportunities for growth and development as part of a larger, global, industry-leading company.”
Within the combined company, the Thomson Video Networks site, located in the heart of a dynamic media and high-tech environment in France, would become a strategic R&D center and continue to be a fundamental participant in the technology ecosystem, benefiting from connections with other worldwide Harmonic R&D facilities.
The proposed acquisition would fully support Thomson Video Networks’ growth strategy. In joining Harmonic, the worldwide leader in the video delivery market, Thomson Video Networks would be able to expand its scale and hold a unique leadership position serving more than 5,000 global customers. Although Thomson Video Networks has very strong positions in EMEA, APAC, and LATAM, the acquisition would enable the company to have a much larger footprint in North America, the source of more than half of Harmonic’s business. Both companies have maintained a strong focus on setting new standards and innovation in IP video, OTT, HEVC, broadcast TV and UHD/HDR technologies. Plus, the companies’ combined dedicated R&D resources total more than 600 engineers, giving the combined company an unequalled capacity to accelerate development of next-generation technologies for advanced virtualization, cloud, SaaS, and HDR solutions.
Delahousse added, “The whole management team is ready to support the integration of Thomson Video Networks within Harmonic to build the indisputable leader in the video industry. We look forward to a bright future for our employees and enhanced choice of solutions for our customers.”
“We are very pleased to welcome Thomson Video Networks to the Harmonic family. We have long respected the company’s technology excellence and market leadership, and their world-class compression solutions will be a welcome addition to our product portfolio,” said Patrick Harshman, president and CEO of Harmonic. “Thomson Video Networks will provide a stronger worldwide presence especially in Europe for Harmonic, making France a key center for us to serve regional customers at a new level.”
Following relevant works council consultations, the proposed transaction is expected to close in Q1 2016, subject to receipt of regulatory approvals and other customary closing conditions.