Video delivery infrastructure firm Harmonic has made a £50m offer to acquire Thomson Video Networks (TVN).
France-headquartered TVN’s products include encoders and decoders, transport stream processors and playout systems.
Harmonic said TVN’s strength in Asia Pacific, Europe the Middle East and Africa and Latin America regions and less than 50% overlap between the companies’ customers would result in “significant opportunities”.
“This combination of Harmonic and TVN will, if completed, set the bar for video innovation globally,” said Harmonic president and chief executive Patrick Harshman.
“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.
“At a time of great change for video content and service providers, the proposed transaction would improve Harmonic’s position as an exceptionally reliable source of innovative video technology that enables delivery and monetisation of amazing new video experiences for the consumer.”
Harmonic and TVN jointly count some 5,000 content and service provider customers in over 100 countries around the world along with 600 R&D engineers.
The deal, which is subject to the agreement of TVN’s shareholders and a consultation process with the company’s employee works council in France, would require Harmonic to pay approximately $75m (£50m) in cash plus up to $15 million in post-closing adjustments.
If it is approved, the deal could close in the first quarter of 2016.