Philips Electronics today announced that it has completed the sale of its Set-Top Boxes and Connectivity Solutions businesses, which were part of its Home Networks business unit within its Consumer Lifestyle sector, to the UK-based technology provider Pace Micro Technology.
Philips received 64.5 million Pace shares, representing a 21.6% shareholding, with an approximate current market value of €75 million. In addition, Philips will receive a total cash payment of €5 million in the coming three years. The transaction will result in a gain of approximately €55 million to be booked in the results of Philips’ Consumer Lifestyle sector in the second quarter of 2008.
Generating revenues of €416 million in 2007, the STB and CS businesses together employ approximately 320 people, predominantly in France, who will transfer to Pace as part of the transaction.
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.
