Harris, also celebrating the first sales and shipments of its new Platinum router, has signed a definitive agreement to acquire Optimal Solutions Inc (OSi), a privately held provider of airtime sales, traffic and billing software systems to over 350 call-letter broadcast stations in North America.
According to a Harris release, the scalability of OSi's Windows-based platform is unmatched in the industry and is eminently scaleable, supporting anything from a single call-letter station up to the largest station groups and network/affiliate relationships with one software installation.
"The acquisition of OSi will further strengthen our portfolio and commitment to provide total content delivery solutions to the industry," said Howard Lance, chairman, president and CEO of Harris Corporation. "OSi expands our capabilities in enterprise-wide software for managing and scheduling advertising and programming for broadcasters, and complements the Harris next-generation H-Class platform."
OSi was founded in 1996 and is based in Kansas City, Missouri. According to the financial small print, revenue for the 12 months ended March 31, 2006, was approximately $5 million and the company currently has approximately $27 million in revenue under contract. Harris will acquire OSi for approximately $32 million in cash, subject to customary closing conditions, and OSi's shareholders may receive additional payments over the next three years if certain operating goals are achieved.
The transaction is expected to close in early May. The acquisition is expected to be neutral to Harris fiscal year 2006 earnings per share, excluding acquisition-related charges, and accretive in fiscal year 2007.