Harmonic Inc. has announced today that it has reached an agreement to sell its Cable Access business to Aurora Networks Inc. for $46 million in cash.
The transaction is subject to closing conditions and will be completed by the end of Q1 2013. Harmonic’s board of directors have also approved an increase to its current share repurchase program to include net after- tax proceeds from the transaction for approximately $35 million.
"The sale of the Cable Access business enables us to sharpen our focus on our largest growth opportunities,” said Patrick Harshman, president and CEO. “Cable Access was Harmonic’s lowest margin product line, and through this transaction and the increase in our authorized share repurchase program, 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.”