LOL, Divicom = "The rump of C-Cube", Divi's gotta love that!
HARMONIC ACQUIRES DIVICOM
11/03/1999
Interspace
(c) 1999 Phillips Business Information, Inc.
Harmonic Inc has agreed the purchase of digital encoding and data broadcast specialist Divicom , currently a subsidiary of semiconductor supplier C - Cube , for approximately $1.7 billion.
One aspect of the deal is that the acquisition of Divicom will allow Harmonic a way in to supplying systems for the transmission of data over satellite. "We are in complementary markets," said Kirk Flatow, Harmonic's vice-president, international sales. "[ Divicom ] is the unquestioned leader in the satellite world."
Harmonic Data Systems (formerly New Media Communication), Harmonic's Israel-based data broadcasting unit, has already developed products for the transmission of data over satellite. "Harmonic Data Systems has been focused on the satellite data market," said Flatow. "We are working new ground on the satellite market. Harmonic Data Systems is well respected but [it does] not [have] a huge market. Divicom knows all these customers intimately and that helps us tremendously."
Flatow indicated that Harmonic was trying to position itself not just as a supplier to the cable industry, its traditional market, but to address the "broadband infrastructure" more generally. Flatow said that this could include telecom companies offering video services, as well as the wireless and terrestrial markets "and other areas that might make sense".
Flatow said that Harmonic and Divicom had been "strong proponents of open standards throughout the world. We think that's very important - operators are best served if they have open standard solutions they can choose from."
Flatow said there was "some overlap" between the product lines of the two companies" but that for the most part they were complementary. He said that they had a number of existing customers in common.
Under the terms of the deal, C-Cube will spin off its semiconductor business and Harmonic will then acquire the rump of C-Cube (Divicom). C-Cube shareholders will then receive 0.5427 shares of Harmonic stock for each C-Cube share.
|
