Following its acquisition of Thomson Video Networks, Harmonic is highlighting its latest innovations for agile video delivery at the 2016 NAB Show, booth #SU1210. Using the combined company’s comprehensive portfolio of solutions, content and service providers can quickly launch new revenue-generating services with the industry’s lowest TCO, deploy more flexible video infrastructures, increase workflow efficiency and deliver pristine video quality.

“Harmonic and Thomson Video Networks are now one company, and at NAB we are showcasing our unified vision for agile video delivery,” said Bart Spriester, senior vice president, Video Products at Harmonic. “In one booth visitors can see innovative solutions that simplify the ability to distribute and deliver pristine video to any device, add great flexibility to broadcast workflows through cloud-based media processing, and take optimal advantage of available bandwidth via next-generation compression technologies. The joint innovation of Harmonic and Thomson Video Networks lets our customers create, deliver and monetize superior-quality video on any screen with extraordinary agility and cost efficiency.”

Key highlights include:

• Software-Based Media Processing: The next evolution of the groundbreaking Harmonic VOS™ media-processing platform is designed to simplify the processing and distribution of live content to any screen, enabling media companies and pay-TV operators to launch OTT services in minutes on public or private infrastructure with industry-leading video quality.

• New Ultra HD (UHD) Capabilities: New content preparation and delivery capabilities for Harmonic’s broad portfolio of UHD solutions include the latest version of the ViBE® 4K UHD encoder, featuring support for the HDR10 and Hybrid Log-Gamma (HLG) high dynamic range (HDR) technologies, and low-latency, high-bitrate 4:2:2 encoding for 4K contribution applications; the addition of UHD encoding capabilities to the ViBE CP6000 contribution platform; and the ability to deliver high-quality UHD over the Internet with the software-based Harmonic PURE Compression Engine™.

• High-Density Transcoding: With an upgrade path to HEVC, the ViBE XT1000 Xtream™ high-density transcoder provides a smooth and cost-effective solution for advanced video delivery. Supporting any-to-any format transcoding, the ViBE XT1000 is ideal for linear broadcasts on cable, IPTV, DTH and DTTV services, as well as multiscreen delivery. 

• Immersive 360 Degree Virtual Reality Viewing Experience: The Electra™ X3 UHD media processor is combined with select ecosystem partners to provide an immersive professional sports 360 degree virtual reality viewing experience. Utilizing UHD delivery ensures a no-comprise VR solution for broadcast quality HD imagery.

• ATSC Broadcasting: The Harmonic ATSC solution helps broadcasters overcome the challenges of channel sharing today while easing the migration to ATSC 3.0 tomorrow.

• Edge Playout and Regionalization: Harmonic is showcasing a fully integrated and centrally managed portfolio of satellite and Internet-based solutions for enhanced content differentiation at the edge of a primary distribution network ranging from targeted ad replacement and transcoding in the ProView™ line of integrated receiver-decoders to full edge playout with the FUZE-1™ playout system.

• High-Performance Media Storage: The new Harmonic MediaGrid 4000 scale-out shared storage solution is optimized for diverse media workflows and offers twice the performance of the MediaGrid 3000 system, as well as a 50-percent increase in storage capacity.

Further information about Harmonic and the company’s products is available at www.harmonicinc.com.

In a move that further consolidates the video encoding and infrastructure market, Harmonic has inked a deal to acquire Thomson Video Networks for $75 million in cash, plus $15 million in post-closing adjustments.

Harmonic said the acquisition of the Rennes, France-based maker of video compression and delivery products is poised to create more global scale and expand its customer base.

In a presentation about the deal, Harmonic noted that TVN has more than 800 customers, including Astro, BBC, Canal+, DirecTV, Foxtel, Telefonica and Vodafone. Harmonic noted that about 95% of TVN’s revenues, estimated to be €71 million (US$77 million) for calendar year 2014 based on the vendor’s audited financial statements, comes from outside the U.S.  Harmonic posted Q3 sales of $83 million, down from $108.1 million in the year-ago quarter as the vendor dealt with the consolidation of key service provider customers.

Harmonic also estimates that there’s a less than 50% customer overlap between the companies, and that the combined company would have an R&D organization of more than 600 engineers and a global services arm with more than 300 people and a network of more than 300 channel partners.

The deal comes as other video technology suppliers combine through M&A, including Ericsson’s acquisition of Envivio, and Amazon Web Services’s purchase of Elemental Technologies.

Harmonic said the proposed deal is anticipated to be accretive to Harmonic's non-GAAP net income in the first year after closing, exclusive of the amortization of intangibles and non-recurring charges. They hope to close the deal in Q1 2016.

"This combination of Harmonic and TVN will, if completed, set the bar for video innovation globally," said Patrick Harshman, Harmonic’s president and CEO, in a statement. "The combined product portfolios, R&D teams and global sales and service personnel would allow us to accelerate innovation for our customers while leveraging greater scale to drive operational efficiencies.”

Harmonic, which was advised on the deal by LD&A Jupiter, said the proposed acquisition is in the form of a “put” option that is subject to the selling shareholders exercising the put option following a consultation process with TVN’s employee works council in France.

Thomson Video Networks, a company backed by private equity partner Edmond de Rothschild, acknowledged it had received the offer, and agreed that it stands to give the company “greater global scale and resources needed to drive more value and continuous innovation to the benefit of its customers.”  

“Consequently, in reply to this offer, Harmonic has been granted exclusivity by Thomson Video Networks' shareholders while Harmonic secures adequate financing for the proposed transaction,” TVN said.