Harris Corp. to Purchase Encoda Systems

Oct 11, 2004  •  Post A Comment

Harris Corp. announced plans to buy Encoda Systems, the longtime leader in the provision of traffic systems to television stations in the United States. Encoda commands about 80 percent of the market share, but its client base had been steadily eroding over the past few years as prominent station groups, such as the NBC-owned stations and Sinclair, have defected and signed long-term agreements with next-generation traffic providers.

Harris, though, is one of the leading companies in the automation business. Encoda’s systems and client base should complement Harris’ existing platforms and allow Harris to extend its reach. Harris will buy Encoda for about $340 million. Encoda’s revenue for the 12 months ending June 30, 2004, was $124 million. The deal should close in early November. Harris will aim to offer end-to-end workflow solutions for its customers, the company said.