Harris Corporation to Acquire Leitch Technology Corporation
Sep 1, 2005 9:19 AM
Harris Corporation has entered into a definitive agreement to acquire all of the shares of Leitch Technology Corporation at a C$14.00 cash price per share. Total price consideration, net of cash on hand, will be approximately US$450 million. Harris expects the transaction to be neutral to fiscal year 2006 earnings per share, excluding acquisition-related charges. In fiscal year 2007, the transaction is expected to be accretive by $.06 earnings per share.
Leitch is a global leader in providing high-performance video systems for the television broadcast industry, including routers and distribution equipment, signal processing, signal management and monitoring, servers and storage area networks, branding software, and post-production editing systems. Harris 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.
“The acquisition further positions our company to lead the broadcast industry’s transition to high-definition digital services,” says Howard L. Lance, chairman, president and chief executive officer of Harris. “Their broad product portfolio provides an excellent complement to our current products and software, and significantly expands our presence in these fast-growing market segments. Leitch has a veteran management team with strong domain knowledge and has launched important new products to meet the changing needs of the digital marketplace. Our combined products and systems serve every segment of the increasingly complex supply chain that brings digital audio, video, and data content to consumers. The acquisition of Leitch, following our acquisition of Encoda Systems in November 2004, clearly establishes Harris as the company that broadcasters turn to as they upgrade their equipment and software systems to operate in a digital environment.”
“The combination of Leitch Technology and Harris Corporation will create a powerful force in the global broadcast industry. We view the opportunity as extremely positive for our employees, customers, and shareholders,” says Tim Thorsteinson, president and chief executive officer of Leitch Technology.
The acquisition is to be completed by way of a statutory plan of arrangement and subject to approval by Leitch shareholders, customary regulatory and court approvals, and other closing conditions. The transaction is expected to close in approximately 60 days.
Harris hosted a conference call yesterday to discuss the acquisition. A replay of the conference call is available via the Internet at www.harris.com.