Harmonic completes sale of video business to MediaKind

Harmonic has completed the sale of its video business to MediaKind for US$145 million in cash, marking a significant step in the company's transition to a pure-play broadband technology provider.

Announced this week, the transaction sees MediaKind acquire Harmonic's video operations as the latter sharpens its focus on its virtualised broadband portfolio. The purchase price remains subject to net working capital and other customary post-closing adjustments.

According to Harmonic, the divestiture will allow the company to concentrate resources and investment on its broadband business, which has reportedly become the fastest-growing segment within its portfolio. The deal also strengthens Harmonic's balance sheet and provides additional capital to support future innovation and expansion.

“The completion of this transaction is a pivotal moment for Harmonic,” said Nimrod Ben-Natan, president and 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.”

The move concludes a strategic shift for Harmonic, which has increasingly focused on broadband infrastructure technologies in recent years. The company's cOS platform is deployed by service providers worldwide and currently supports broadband services delivered to nearly 46 million customer premises equipment (CPE) devices across North America, Europe, Latin America and Asia.

Harmonic cited its position in cable broadband equipment, virtual CMTS and distributed access architecture (DAA) markets as key factors underpinning its growth strategy moving forward.