IPTV solutions provider Optibase Ltd. (Nasdaq: OBAS) will record a capital gain of $4.1-4.8 million on the sale of Scopus Video Networks Ltd. (Nasdaq:SCOP) to Harmonic Inc. (Nasdaq: HLIT). Optibase owns 36.3% of Scopus after attempting to take over its competitor.
Harmonic will acquire Scopus for $5.62 per share, amounting to $86 million, and $51 million after deducting Scopus' cash. Optibase will receive $28.7 million in cash for its stake.
"Globes": In retrospect, was the acquisition of the Scopus stake a mistake?
Optibase CFO Amir Philips: "I don’t think it was a mistake. These were decisions made before I joined the company, and at the time it seemed to be the right strategic decision. In retrospect, we acquired the stake, we've sold it, and no harm was done."
How does Optibase plan to deal with the consolidation in the IPTV market in the wake of the acquisition of Scopus?
"The overlap between us and Scopus isn't so great, which is why it was rational for us to make a deal with it. The fact that Scopus was acquired is great, but it has no direct effect on us in a business sense, because we're in a slightly different place. In any case, it forces us to reassess our business plan, and the money we'll get from the deal will help us make future investments, should we decide to make any."
Optibase's share rose 44% yesterday following the Scopus acquisition to $1.08 per share, giving a market cap of $17.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2008
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