Thomson and NXP Semiconductors to Combine Can Tuner Modules Activities
Leading players to create joint venture with scale to invest and grow
NXP Semiconductors and Thomson (Euronext 18453; NYSE: TMS) today announced they have signed a Memorandum of Understanding to combine their can tuner modules operations in a joint venture. Thomson will appoint the CFO of this new venture, while NXP will appoint the CEO. NXP and Thomson expect that the definitive joint venture agreements will be finalized and the transaction will close in the second quarter of 2008, subject to closing conditions, including social and regulatory approvals.
“By combining their operations, NXP and Thomson create a business that has the scale and focus to be a long-term winner in the can tuner modules market,” commented Christos Lagomichos, executive vice president and general manager of NXP’s Home business unit. “The combination of these two highly complementary businesses will generate significant operational synergies that will free up resources to address new market opportunities for RF modules. At the same time the deal will enable NXP to focus the Home business unit on Digital TV, Set Top Box and silicon tuner activities.”
“Digital can tuners remain strategic components at a time when broadcast and broadband distribution infrastructures look to advanced delivery technologies such as DVB-S2, DVB-T, DVB-H and new cable modulation technologies,” said Thomson CTO Jean-Charles Hourcade. “This combination will benefit our customers as the digital terrestrial roll-out accelerates in the US and in Europe.”
About Thomson – World leader in digital video technologies
Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems to the Media, Entertainment & Communications players – content creators, content distributors and broadcasters – and supports them in order to help them to improve their commercial offers and their performance in a rapidly changing technology environment. For more information: .
Forward-looking statements – Thomson
Certain statements in this press release, including any discussion of management expectations for future periods, constitute “forward-looking statements” within the meaning of the “safe harbor” of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. In addition, references to Memorandae of Understanding should be understood to mean non-binding Memorandae of Understanding, at this time. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson’s filings with the U.S. Securities and Exchange Commission.
About NXP
NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of EUR 5 billion in 2006. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at .
Forward-looking statements – NXP
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of NXP and certain of the plans and objectives of NXP 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.