Harris Corporation Completes Acquisition of Leitch Technology
October 25 2005 - 3:15PM
PR Newswire (US)
Positions the Company to Lead the Broadcast Industry's Transition
to High-Definition Digital Services MELBOURNE, Fla., AND TORONTO,
Oct. 25 /PRNewswire-FirstCall/ -- Harris Corporation (NYSE:HRS) and
Leitch Technology Corporation (TSX: LTV) announced today that
Harris has completed its previously announced acquisition of Leitch
following approval by Leitch shareholders and Court approval of the
transaction. Leitch shareholders approved the acquisition by Harris
of all of the outstanding common shares of the Toronto-based
company for a cash price of C$14.00 per share. Total cash
consideration paid by Harris, net of Leitch's cash on hand, was
approximately US$450 million. "The addition of Leitch's talented
workforce, complementary product portfolio and customer base helps
establish Harris as the partner of choice for broadcasters
upgrading their equipment and software systems to operate in a
digital environment," said Howard Lance, chairman, president and
CEO of Harris. "No other company offers the breadth of products
that span the entire digital media content delivery chain. This
acquisition enables Harris to further expand into larger,
faster-growing broadcast markets, and we're delighted that Tim
Thorsteinson and his leadership team will remain with the company
and continue to build on Leitch's success as a business unit within
our Broadcast Communications Division." "As part of the Harris
Broadcast Communications business, Leitch will continue to provide
the products that allow the broadcaster to transition to high
definition digital services but with the added resources and global
scale of one of the world's leading broadcast hardware and software
suppliers," said Leitch President and CEO Tim Thorsteinson. "We
look forward to building on our success and maximizing our value to
customers as a combined company." Leitch shareholders should refer
to Leitch's management information circular dated September 16,
2005 for information regarding receipt of the payment of C$14.00
per share for their Leitch shares. All of Leitch's products --
including routers and distribution equipment, signal processing,
signal management and monitoring, servers and storage area
networks, branding software and post-production editing systems --
will be added to the Harris broadcast product portfolio. This
combined portfolio serves every segment of the increasingly complex
supply chain that brings digital audio, video, and data content to
consumers. Leitch currently serves approximately 3,000 television
service providers in 100 countries. Harris Broadcast Communications
Division is the worldwide leader in providing digital broadcast
technology solutions for global broadcast media markets, including
television and radio transmission systems, networking solutions and
enterprise-wide software and media management systems. Harris
Corporation is an international communications and information
technology company serving government and commercial markets in
more than 150 countries. With headquarters in Melbourne, Florida,
the company has annual sales of over $3 billion and has 12,600
employees -- including 5,500 engineers and scientists -- dedicated
to the development of best-in-class assured communications(TM)
products, systems, and services. The company's operating divisions
serve markets for government communications, RF communications,
broadcast communications, and microwave communications. Additional
information about Harris Corporation is available at
http://www.harris.com/. An industry leader for more than 30 years,
Leitch provides high-performance, multi-format solutions for
professional digital video. Through its two business segments --
Digital Media and Infrastructure -- Leitch offers
standard-definition/high-definition (SD/HD) products and systems
that enable media companies to streamline workflow from production
through transmission. Leitch offers a comprehensive, award-winning
portfolio of processors, routers, servers, graphics and editing
solutions, master control and branding systems, digital signage,
network monitoring and control software, and test and measurement
instruments, along with premium customer support. Additional
information about Leitch Technology Corporation is available at
http://www.leitch.com/. Forward-Looking Statement Statements in
this press release that are not historical facts are
forward-looking statements that reflect management's current
expectations, assumptions, and estimates of future performance and
economic conditions. Such statements are made in reliance upon the
safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements in this release include but are not
limited to the anticipated benefits to the Company related to the
acquisition of Leitch. The Company cautions investors that any
forward-looking statements are subject to risks and uncertainties
that may cause actual results and future trends to differ
materially from those matters expressed in or implied by such
forward-looking statements. The Company's consolidated results and
the forward-looking statements could be affected by many factors,
including but not limited to: our participation in markets that are
often subject to uncertain economic conditions which makes it
difficult to estimate growth in our markets and, as a result,
future income and expenditures; our dependence on the U.S.
government for a significant portion of our revenues, as the loss
of this relationship or a shift in U.S. government funding could
have adverse consequences on our future business; potential changes
in U.S. government or customer priorities due to program reviews or
revisions to strategic objectives, including termination of or
potential failure to fund U.S. government contracts; risks inherent
with large long-term fixed-price contracts, particularly the
ability to contain cost overruns; the performance of critical
subcontractors or suppliers; financial and government and
regulatory risks relating to international sales and operations,
including fluctuations in foreign currency exchange rates and the
effectiveness of our currency hedging program; our ability to
continue to develop new products that achieve market acceptance;
the consequences of future geo-political events, which may affect
adversely the markets in which we operate, our ability to insure
against risks, our operations or our profitability; strategic
acquisitions and the risks and uncertainties related thereto,
including our ability to manage and integrate acquired businesses;
potential claims that we are infringing the intellectual property
rights of third parties; the successful resolution of patent
infringement claims and the ultimate outcome of other
contingencies, litigation and legal matters; customer credit risk;
the fair values of our portfolio of passive investments, which
values are subject to significant price volatility or erosion;
risks inherent in developing new technologies; the potential impact
of hurricanes on our operations in Florida and the potential impact
of earthquakes on our operations in California; the ability to
recruit and retain qualified personnel; and general economic
conditions in the markets in which we operate. Further information
relating to factors that may impact the Company's results and
forward-looking statements are disclosed in the Company's filings
with the SEC. Harris disclaims any intention or obligation, except
as imposed by law, to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise. For additional information, contact Harris
Corporation at . Contacts: Brent Dietz Laura Whitaker Media
Inquiries Media Inquiries Harris Corporate Headquarters Leitch
Technology Corporation 321-724-3554 408-782-1201 Mary Beth Harnett
David Toews Media Inquiries Investor Relations Inquiries Harris
Broadcast Communications Division Leitch Technology Corporation
513-459-3620 416-445-9640 Pam Padgett Investor Relations Inquiries
Harris Corporate Headquarters 321-727-9383 DATASOURCE: Harris
Corporation CONTACT: Media: Brent Dietz, +1-321-724-3554, , or Mary
Beth Harnett, Harris Broadcast Communications Division,
+1-513-459-3620, , or Investors: Pam Padgett, Harris Corporate
Headquarters +1-321-727-9383, , all of Harris Corporation; or
Media: Laura Whitaker, +1-408-782-1201, , or Investors: David
Toews, +1-416-445-9640, , both of Leitch Technology Corporation,
both for Harris Corporation Web site: http://www.harris.com/
http://www.leitch.com/
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