twice connect
careers

Philips Sells STB Business To Pace Micro

4/22/2008 01:09:00 PM Eastern

Amsterdam, The Netherlands — Furthering its divestment of profit-challenged businesses, Royal Philips Electronics said this week it has completed the sale of its set-top boxes (STB) and connectivity solutions (CS) businesses, which were part of its home networks business unit within its consumer lifestyle sector, to U.K.-based technology provider Pace Micro Technology.

In the deal, Philips received 64.5 million Pace shares, representing a 21.6 percent stake in the company, which is valued at approximately $120 million. In addition, Philips will receive a total cash payment of almost $8 million in the coming three years.

The transaction will result in a gain of approximately $88 million, which will be recorded in the results of the Philips’ consumer lifestyle sector in the second quarter of 2008, Philips said.

Philips said the STB and CS businesses combined generated $665 million in revenue in 2007, and employ approximately 320 people, predominantly in France, who will transfer to Pace as part of the transaction.

Philips said in a statement that the transaction “combines the strengths of two leading players in the industry, creating one of the largest set-top-box players in the world at a time when the shift from analog to digital TV is rapidly increasing.”

PHOTOS
ProSource Meeting Filled With Optimism

San Antonio — Optimism reigned at ProSource’s

Ingram Draws 500 To Spring Vendor Expo

Scottsdale, Ariz. — Ingram Micro Consumer

CEA Holds ’14 Digital Patriots Dinner

Washington — CEA held its annual Digital Patriots’

8 Technology Accessories For a Greener Earth

An Earth Day review of Earth-friendly products, by

BrandSource Shows Diverse Product Selection

BrandSource’s Summit show at the Marriott World

Scenes From Toy Fair

By Lisa Johnston

ADL Honors Morales, Bilas, Paull, Weedfald At Annual Dinner

New York — The Anti-Defamation League’s National