Amsterdam, The Netherlands — Royal Philips Electronics has reached an agreement with TPV Technology Limited on key terms and conditions of a brand-licensing agreement under which Philips will transfer its PC monitors business, IT Displays, to TPV.
According to the company, this move is in line with Philips’ existing commitment to “take decisive steps to improve the profitability levels at its television business, of which the IT displays unit forms part.”
Under the new agreement, TPV will assume responsibility for sourcing, distribution, marketing and sales of all Philips IT Displays activities worldwide. TPV will also have the right to exclusively use the Philips brand name for PC monitors worldwide; in exchange, it will pay Philips revenue-based royalties. This transaction is expected to be completed by the end of the year but is currently still subject to applicable regulatory approvals and the fulfillment of specific closing conditions.
In April, Philips announced that Funai Electric would assume responsibility for all Philips’ consumer television activities in the United States and Canada, and that Philips would take steps to further optimize its global supply base in TV. The company said, “Philips remains ahead-of-plan in optimizing its TV operations.”