Harmonic (HLIT) M&A Announcement summary

Deal rationale and strategic fit

• Sale of the video business segment enables focus on expanding the broadband and fiber business and advances growth initiatives.

• Divestiture provides capital infusion and financial flexibility to support expansion and shareholder value.

• Transaction allows leveraging an expanding installed base and unlocking new growth opportunities.

• Simplifies operations by eliminating the need to manage two distinct business models.

• Video business customers and employees will transition to MediaKind, creating a leading independent streaming infrastructure company.

Financial terms and conditions

• Binding all-cash offer received to sell the video business for approximately $145 million.

• Part of the proceeds will fund a $200 million share repurchase program.

Synergies and expected cost savings

• Sale will enable more effective and agile operations by focusing on a single business model.