NXP to acquire Conexant's set-top box operations

With this transaction, NXP's existing set-top box and digital TV operations will be combined with Conexant's BMP business. The combined operations will create a top three player in digital video systems. The deal represents NXP's fourth acquisition since independence and is the first for its Home Business Unit. Conexant's BMP business, which provides industry-leading solutions for satellite, cable and IPTV applications, accounted for US $205 million in revenue in 2007. Under the terms of the deal, NXP will pay Conexant 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 broadcast operator set-top box (STB) solutions are complementary to NXP's terrestrial IP and retail STB and Digital TV products. Combined, they will offer a wide portfolio for STB and digital TV applications for the industry, creating a technology source for developing digital video applications. 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.