NXP to acquire Conexant’s STB operations

NXP Semiconductors is to acquire the Broadband Media Processing (BMP) business of Conexant Systems for $110 million (€70.4 million) in cash with an additional payment of up to $35 million based on financial performances over the period from closing through 2009. NXP said it aims to combine the company’s existing set-top box and digital TV operations with Conexant’s BMP operations. Conexant’s STB solutions are complementary to NXP’s terrestrial IP and retail STB and digital TV products, according to NXP.

“NXP continues on the path to reshape the industry by building scale and leadership positions in its portfolio,” confirmed Frans van Houten, CEO NXP Semiconductors, in a prepared statement. “By acquiring Conexant’s BMP activities, our digital TV and STB business will be strengthened in the operator segment of the market and we position ourselves to compete effectively on a global basis.”

In 2007, Conexant claimed that its BMP business reported revenues of $205 million. Once the transaction is finalized, about 700 Conexant employees at locations in the US, India, Northern Ireland, Israel and China will join NXP’s Home Business Unit.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the next 60 days.