Aurora Networks closes Harmonic optical transmission asset deal

March 8, 2013

Aurora Networks Inc. has completed the previously announced acquisition of the optical transmission business of Harmonic Inc. (NASDAQ: HLIT; see “Aurora Networks to buy Harmonic’s cable access business”). The cable MSO optical transport equipment vendor paid $46 million in cash for its new assets.

John Dahlquist, vice president, marketing, at Aurora Networks, acknowledged to Lightwave shortly after the deal was announced that expanding his company’s customer base provided the primary catalyst for the deal. The transaction doubled Aurora Networks’ customer list, he said.

Despite the nearly 100% overlap between the products the Harmonic group produced and Aurora Networks’ existing portfolio, Aurora Networks currently has no plans to discontinue any Harmonic products, Dahlquist said. The company is committed to fully serving customers using those products. Dahlquist said that the Harmonic products will continue to be sold as well, particularly in “price-sensitive” markets Aurora Networks previously has had trouble penetrating. This potentially includes cable system operators who are not yet ready to migrate to the digital return technology in which Aurora Networks specializes.

Meanwhile, Dahlquist also revealed that Aurora Networks was one of several bidders for the Harmonic assets. He did not provide further details.

“With the closing of the acquisition behind us, we are now focused on a swift integration of the product lines into our systems with a goal of minimum customer inconvenience,” said Scott Weinstein, vice president, new business development, at Aurora Networks, via a press release. “We have already started the integration process, with many of the former Harmonic employees who will assist Aurora’s efforts to achieve an integration goal of four months joining our team. We firmly believe that this acquisition will increase our ability to innovate new technologies enabling us to continue to grow and provide our customers with solutions that will ensure their potential to meet future challenges.”

For more information on optical transmission systems and suppliers, visit the Lightwave Buyer’s Guide.

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