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May 09, 2008
NXP to Acquire Conexant to Boost its STB Biz
By Arun Satapathy TMCnet Contributing Editor
NXP Semiconductors (News - Alert) today said that it will acquire Conexant Systems broadband media processing (BMP) business to strengthen its digital TV and set top box (STB) business in Eindhoven. NXP will acquire Conexant for $110 million in cash up front, and additional consideration of up to $35 million based on achievement of certain revenue milestones.
NXP has said that it will combine its existing STB and digital TV operations with Conexant’s BMP business that provides products for satellite, cable and IPTV
applications, which is reported to be of $205 million in revenue in 2007.
Conexant’s strengths in broadcast operator STB products will be complementary to NXP’s terrestrial IP and retail STB and digital TV products. After the patch-up, the businesses will comprise a semiconductor portfolio for STB and digital TV applications. The new portfolio will serve as a means for developing digital video applications such as IC devices for receiving more digital content in terrestrial, cable, satellite and IPTV (News - Alert) broadcast environments with best-in-class picture and sound quality in the home, noted NXP.
”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, CEO of NXP Semiconductors, in a statement.
NXP also predicted that R&D synergies from the combination of the business such as the development of IP that can be reused across NXP’s STB and digital television systems portfolio.
Further, NXP gains a team of Conexant engineers who have established a track record of developing industry-leading and award-winning solutions, along with Conexant’s BMP management team that is expected to bring to NXP their excellent market knowledge and close customer relationships, said NXP’s Christos Lagomichos, executive VP and general manager of the home business unit.
”Over the years, the Conexant team has successfully developed complex solutions for a variety of set-top box applications. 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,” added Conexant CEO Scott Mercer.
About 700 Conexant employees at locations in the US, India, Northern Ireland, Israel and China will join NXP’s home business unit once the proposed transaction will complete, which the company said is expected in the next 60 days.
In a different development earlier this month, NXP and STMicroelectronics (News - Alert) announced an agreement to combine their respective wireless operations to form a joint-venture company targeting major handset manufacturers, which will see the merger of two businesses that together generated $3 billion in revenue in 2007 and own thousands of communication and multimedia patents.
Arun Satapathy is a contributing freelance writer for TMCnet.
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IPCommunications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is, Best Practices in Agent Retention brought to you by Enkata.
NXP has said that it will combine its existing STB and digital TV operations with Conexant’s BMP business that provides products for satellite, cable and IPTV
applications, which is reported to be of $205 million in revenue in 2007.Conexant’s strengths in broadcast operator STB products will be complementary to NXP’s terrestrial IP
and retail STB and digital TV products. After the patch-up, the businesses will comprise a semiconductor portfolio for STB and digital TV applications. The new portfolio will serve as a means for developing digital video applications such as IC devices for receiving more digital content in terrestrial, cable, satellite and IPTV (News - Alert) broadcast environments with best-in-class picture and sound quality in the home, noted NXP.”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, CEO of NXP Semiconductors, in a statement.
NXP also predicted that R&D synergies from the combination of the business such as the development of IP that can be reused across NXP’s STB and digital television systems portfolio.
Further, NXP gains a team of Conexant engineers who have established a track record of developing industry-leading and award-winning solutions, along with Conexant’s BMP management team that is expected to bring to NXP their excellent market knowledge and close customer relationships, said NXP’s Christos Lagomichos, executive VP and general manager of the home business unit.
”Over the years, the Conexant team has successfully developed complex solutions for a variety of set-top box applications. 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,” added Conexant CEO Scott Mercer.
About 700 Conexant employees at locations in the US, India, Northern Ireland, Israel and China will join NXP’s home business unit once the proposed transaction will complete, which the company said is expected in the next 60 days.
In a different development earlier this month, NXP and STMicroelectronics (News - Alert) announced an agreement to combine their respective wireless operations to form a joint-venture company targeting major handset manufacturers, which will see the merger of two businesses that together generated $3 billion in revenue in 2007 and own thousands of communication and multimedia patents.
Arun Satapathy is a contributing freelance writer for TMCnet.
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IPCommunications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is, Best Practices in Agent Retention brought to you by Enkata.
