Monday, April 28, 2008

NXP to Acquire Conexant's Set-top Box Operations

NXP Semiconductors, the independent semiconductor company founded by Philips, agreed to acquire the Broadband Media Processing (BMP) business of Conexant Systems for US $110 million in cash up front, and additional consideration of up to US $35 million based on achievement of certain revenue milestones over the period from closing through 2009.

Conexant's BMP business, which provides industry-leading solutions for satellite, cable and IPTV applications, accounted for US $205 million in revenue in 2007.

NXP said Conexant's strengths in broadcast operator set-top box (STB) solutions are complementary to its terrestrial IP and retail STB and Digital TV products. The combined operations will create a top three player in digital video systems.

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

The deal represents NXP's fourth acquisition since independence and is the first for its Home Business Unit.

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