Philips announces completion of sale of Set-Top Boxes and Connectivity Solutions businesses to Pace Micro Technology of the UK
Amsterdam, The Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG) today announced it 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 U.K.-based technology provider Pace Micro Technology (FTSE: PIC).
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. The transaction combines the strengths of two leading players in the industry, creating one of the largest set-top-box players in the world at a time when the shift from analog to digital TV is rapidly increasing.
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements in this announcement are based upon information known to Philips on the date of this announcement. Philips undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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