STMicroelectronics Completes Acquisition of Genesis MicrochipFriday, January 25th, 2008
Acquisition strengthens STMicroelectronics’ position as a semiconductor technology leader in the consumer electronics market
Geneva, Switzerland — STMicroelectronics (NYSE:STM) today announced that it has performed all necessary steps to complete its acquisition of Genesis Microchip Inc. and has therefore concluded the acquisition.
Through this acquisition, STMicroelectronics expects to expand its leadership in the $1.5 billion digital TV market, one of the fastest growing segments in consumer semiconductors. Genesis Microchip will enhance STMicroelectronics’ technological capabilities for the transition to fully digital solutions in this segment and strengthen its product and intellectual-property portfolio.
“STMicroelectronics is a leader in digital consumer technologies, with a strong position in set-top box compression and decompression technologies and “front end” processing technologies in digital TV. Genesis is a leader in “back-end” image and video processing and digital interconnect technologies,” said Philippe Lambinet, Corporate Vice President and General Manager of STMicroelectronics’ Home Entertainment & Displays Group. “Now that we have combined the two companies, ST will have the products, technology, IP and expertise to offer best-in-class integrated DTV solutions that our customers are increasingly demanding.”
Genesis will be integrated into STMicroelectronics’ Home Entertainment & Displays Group. Elias Antoun, the Chief Executive Officer of Genesis, has joined STMicroelectronics and will lead STMicroelectronics’ television and display initiatives, reporting to Philippe Lambinet.
On January 24, 2008, STMicroelectronics completed its tender offer for Genesis, following the expiration of the subsequent offering period, which STMicroelectronics had previously extended. According to Mellon Investor Services LLC, the depositary for the tender offer, as of the expiration of the subsequent offering period, a total of approximately 34.2 million shares of Genesis common stock, representing approximately 89.1% of the outstanding common stock of Genesis, had been tendered to STMicroelectronics. Also, on January 24, 2008, STMicroelectronics exercised its right under the merger agreement to purchase from Genesis at a price per share of $8.65 the number of newly issued shares of Genesis necessary for STMicroelectronics to control more than 90.0% of the outstanding shares of Genesis.
Earlier today, on January 25, 2008, STMicroelectronics completed its acquisition of Genesis through a merger in which all shares of common stock of Genesis not validly tendered and purchased in the tender offer were converted into the right to receive $8.65 per share in cash, without interest and subject to applicable tax withholding. As a result of the merger, on January 25, 2008, Genesis became a wholly owned subsidiary of STMicroelectronics and the shares of Genesis were withdrawn from trading on the Nasdaq Global Market.