Video delivery technology firm Harmonic has announced that it is to acquire server and storage manufacturer Omneon for $274m.
Under the terms of the deal the Omneon product line will be integrated with Harmonic’s own range.
The majority of Omneon’s senior management team will take-up positions with Omneon including current CEO Suresh Vasudevan and Lawrence Kaplan, one of the company’s founders.
“This proposed combination will position Harmonic to become a global leader in video infrastructure for the digital media industry,” said Patrick Harshman, president and CEO, Harmonic. “Media companies are being driven by ever-increasing demand for video content coupled with consumers’ desire to consume video anytime and anywhere. At the same time, the dramatic growth of video delivery over broadband and wireless networks is blurring traditional boundaries between content producers and service providers.”
The combined company will have 2000 customers in 100 countries, a total R&D organisation of 450 people and a sales and support staff of 330.
“The combined company will have industry-leading technology and expertise in video compression, processing and delivery, video-optimized storage, production and playout servers, and media management,” said Suresh Vasudevan, CEO of Omneon. “Not only are the technologies complementary, but we see unique opportunities to leverage our technology adjacencies and drive market-leading innovation. We are very excited about this combination and the opportunities it creates for our customers and employees.”
There has been no announcement so far regarding the possibility of redundancies resulting from the acquisition.