Thomson and NXP Semiconductors to Combine Can Tuner Modules Activities

Thursday, February 14th, 2008
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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.”