WEST YORKSHIRE, England – Pace Micro Technology announced today that it has entered into a conditional agreement to acquire the set-top box and connectivity solutions business of Royal Philips Electronics.
The Philips STB and CS Business employs approximately 335 staff predominantly based in France and is a designer and supplier of a range of digital TV products including satellite, cable, terrestrial and IPTV set-top box products. The proposed transaction values the business at up to £68 million.
Pace and the Philips STB and CS Business each have over 20 years experience in the set-top box market. “The combined business will be a global top three set-top box company with a strong customer and product portfolio,” says the press release.
As part of this transaction, Pace will be entitled to use the Philips brand in retail distribution for an agreed range of products for the next three years.
"Based on 2006 performance, this deal will create a company with pro forma revenues of over US$1 billion, producing approximately 8.5 million set top boxes a year. Pace and the Philips STB and CS Business combined technologies, expertise and customer reach will create a leading centre of excellence in the set-top box industry,” said Neil Gaydon, CEO of Pace.
