Harris to Buy Aastra Digital Video

The price: $35 million in cash.
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Harris

(HRS)

a communications and information technology company, announced Tuesday that it has signed a definitive agreement to acquire Aastra Digital Video for about $35 million in cash.

The acquisition is 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, the company said.

Aastra Digital Video which recorded revenue of $18 million for 12 months ended Dec. 31, 2005, offers networking, encoding, decoding, and multiplexing technologies used by television broadcasters, telecommunications providers and satellite networks.

"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 the company.

"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," it added.

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