Harris Corporation to Acquire Aastra Digital Video
May 23 2006 - 5:01PM
PR Newswire (US)
Expands Video Networking Capabilities for Broadcasters and Broadens
Total Content Delivery Solutions MELBOURNE, Fla., May 23
/PRNewswire-FirstCall/ -- Harris Corporation (NYSE:HRS) has signed
a definitive agreement to acquire Aastra Digital Video, a business
unit of Aastra Technologies Limited (TSE:AAH). Aastra Digital Video
develops and markets video networking, encoding, decoding, and
multiplexing technologies used by television broadcasters,
telecommunications providers and satellite networks. The heart of
their product portfolio is the VideoRunner(TM) multi-service video
networking system. They have been a supplier to Harris of video
networking products for the past eight years, sold under the
Flexicoder(TM) and NetVX(TM) brand names. Aastra Digital Video is
based in Bridgewater, NJ, with approximately 35 employees. Aastra's
customers also include Turner Broadcasting, the National Football
League, DIRECTV, Bell Canada, and the Canadian Televison Network
(CTV). Revenue for the 12 months ended December 31, 2005, was
approximately $18 million with EBITDA of $5.7 million, which does
not include certain corporate allocations. Harris will acquire the
assets of Aastra Digital Video for approximately $35 million in
cash, subject to customary closing conditions, and the transaction
is expected to be accretive to Harris fiscal year 2007 earnings per
share, excluding acquisition-related charges. "This acquisition
adds to our Total Content Delivery solutions for the broadcast
industry and will enable Harris to offer networking products that
transport media content over a variety of broadcast, cable,
satellite, and telco networks, including those supporting new
services such as IPTV and Mobile TV," said Tim Thorsteinson,
president of Harris Broadcast Communications Division. "Harris has
had an excellent relationship with Aastra for many years, and we
believe this acquisition will broaden our engineering resources to
address rapidly emerging markets and new services that require
expertise in areas such as the distribution and delivery of MPEG-2
and MPEG-4 program streams. This acquisition is a good technology
match that creates significant value for our customers." Harris 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 more than 13,000 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/ . 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 timing and anticipated benefits to the Company
related to the acquisition of Aastra Digital Video. 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. DATASOURCE: Harris
Corporation CONTACT: Pam Padgett, Harris Investor Relations,
+1-321-727-9383, or , or Brent Dietz, Harris Media Relations,
+1-321-724-3554, or Web site: http://www.harris.com/
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