HARMONIC INC. 8-K

What Happened
Harmonic Inc. announced it has executed an Asset Purchase Agreement (APA) with Leone Media Inc. (d/b/a MediaKind) to sell its Video Business. The company had a Put Option under a December 8, 2025 Put Option Agreement enabling it to require the buyer to purchase the business; after completing the French employee works council consultation on March 12, 2026, Harmonic delivered notice to exercise the Put Option on March 16, 2026 and both parties signed the APA on March 20, 2026. The purchase price is $145 million in cash, subject to customary post-closing adjustments, and the transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and other closing conditions.

Key Details

• Purchase price: $145 million in cash, subject to adjustment for net working capital, cash and debt of the sold entities, and specified selling expenses.
• Timeline: French works council consultation completed March 12, 2026; notice to exercise Put Option delivered March 16, 2026; APA executed March 20, 2026; expected close Q2 2026.
• Conditions & rights: Closing subject to customary regulatory approvals and other conditions; either party may terminate if closing conditions are not satisfied by June 8, 2026 (with a possible automatic extension to September 8, 2026).
• Other terms: Mutual indemnification provisions and a three‑year non‑compete by Harmonic post-closing.

Why It Matters
This is a material divestiture of Harmonic’s Video Business and will change the company’s asset mix and cash position if completed. The deal price and adjustments will affect proceeds and future financial reporting; completion depends on regulatory approvals and satisfaction of closing conditions, so timing and certainty are not guaranteed. Investors should watch for completion updates and any disclosures on how proceeds or expected tax/synergy impacts will be used or reflected in Harmonic’s results. The company also cautions that forward‑looking statements about the transaction involve risks and may not be updated until future filings or earnings calls.