Pace Micro Technology has taken a step further towards the purchase of the set-top box and connectivity solutions business of Royal Philips Electronics.
The works council in France, where the unit is based, has now completed its consultation procedure and this satisfies one the conditions of the December 19 agreement.
Philips agreed in principle to divest the STB and CS businesses to Pace in exchange for 70 million Pace shares, after which Philips will become a 23% shareholder in the combined business, representing a market value of around €90 million calculated with the closing price of Pace shares on December 18.
Generating estimated revenues of €425 million in 2007, the STB and CS businesses together employ approximately 335 people, predominantly based in France, who would transfer to Pace as part of the transaction.