THOMSON ACQUIRES PHILIPS’ PROFESSIONAL BROADCAST

ROYAL Philips Electronics of the Netherlands and Thomson Multimedia of France have reached a preliminary agreement for the purchase by Thomson of five businesses of the Philips Professional Broadcast group, through a new holding company established by Philips.
Under the preliminary agreement, for an undisclosed sum, Thomson will acquire 67 per cent of the new holding company comprising the five businesses. Philips will have the right to sell their remaining 33 per cent stake in the holding company to Thomson in two equal tranches on January 1 2002 and January 1 2003 respectively.
Thierry Breton, Chairman and CEO of Thomson Multimedia, said: “These businesses fit perfectly with our Digital Media Solutions initiative. The advent of digital broadcasting and video over the internet will soon require for content providers, broadcasters and network operators deployment of new end-to-end capability from the studio to consumer devices. Complementing Thomson’s professional broadcasting solutions and Nextream Interactive Video Networks businesses, this move represents another step for serving this very promising market.”
The proposed transaction fits with Philips’ strategy to streamline their product portfolio around core competencies. Philips, via their Digital Networks business, will continue to focus on consumer product solutions and enabling technologies for the broadcasting market. The Digital Transmission Systems and SMATV businesses of Philips are not included in this transaction.
The proposed transaction will strengthen Thomson’s Digital Media Solutions (DMS) division. Particularly for new business-to-business solutions for broadcasters, content providers, network operators and advertisers deploying full digital video content solutions.
Thomson intends to eventually combine their own professional broadcast activities with the businesses acquired from Philips. Together they represent a total turnover estimated at Euro 366 million of sales in 1999, achieving leading positions for the advanced broadcast market.
(CD)