Harmonic to sell Cable Access to Aurora Networks

Video delivery infrastructure specialist Harmonic has reached an agreement to sell its Cable Access business to Aurora Networks for £46 million in cash. The transaction is subject to customary closing conditions and is expected to be completed by the end of Q1.

The broadly based Cable Access product range includes optical transmitters, amplifiers, receivers, nodes and more.

In line with ongoing efforts to review its capital structure and deliver value to all stockholders, Harmonic’s Board of Directors has also approved an increase to its current share repurchase programme to include the net, after-tax cash proceeds from this transaction of approximately $35 million.

Patrick Harshman, president and CEO, comments: “The sale of the Cable Access business enables us to sharpen our focus on our largest growth opportunities. Cable Access was Harmonic’s lowest margin product line, and through this transaction and the increase in our authorised share repurchase programme, 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.”