NXP Semiconductors has announced that it has decided to acquire the Broadband Media Processing (BMP) business of Conexant Systems, Inc.
Conexant’s BMP business, which provides industry-leading solutions for satellite, cable and IPTV applications, accounted for USD 205 million in revenue in 2007.
Under the terms of the deal, NXP will pay Conexant USD 110 million in cash up front, and additional consideration of up to USD 35 million based on achievement of certain revenue milestones over the period from closing through 2009.
According to NXP, Conexant’s strengths in broadcast operator set-top box (STB) solutions are complementary to its terrestrial IP and retail STB and Digital TV products.
“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.” said Frans van Houten, Chief Executive Officer, NXP Semiconductors.
Combined, they aim to offer the widest semiconductor portfolio for STB and digital TV applications in the industry, creating a unique technology source for developing digital video applications: innovative IC solutions for receiving more digital content in terrestrial, cable, satellite and IPTV broadcast environments with best in class picture and sound quality, anytime, anywhere in the home.
“Over the years, the Conexant team has successfully developed complex solutions for a variety of set-top box applications,” said Scott Mercer, Conexant’s chief executive officer.
“NXP has a long history in consumer electronics, and they possess the scale, skill-sets, and resources required to maintain and expand the positions we established. I am convinced that the combined team will attain an even higher level of success as they continue to deliver innovative, cost-effective set-top box solutions to customers worldwide.”
With this transaction, NXP’s existing set-top box and digital TV operations will be combined with Conexant’s BMP business.
When the transaction closes, approximately 700 Conexant employees at locations in the United States, India, Northern Ireland, Israel and China will join NXP’s Home Business Unit.
The deal represents NXP’s fourth acquisition since independence and is the first for its Home Business Unit. |
