Electronics Production | April 21, 2008
Philips sales the Set-Top Boxes and Connectivity Solutions businesses to Pace
Philips has completed the sale of its Set-Top Boxes (STB) and Connectivity Solutions (CS) businesses, which were part of its Home Networks business unit within its Consumer Lifestyle sector, to UK based Pace Micro Technology.
Philips received 64.5 million Pace shares, representing a 21.6% shareholding, with an approximate current market value of EUR 75 million. In addition, Philips will receive a total cash payment of EUR 5 million in the coming three years. The transaction will result in a gain of approximately EUR 55 million to be booked in the results of Philips’ Consumer Lifestyle sector in the second quarter of 2008. Generating revenues of EUR 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.