Pace Buys Philips Set-Top Box Business

[12-20-07 – Satellite Today] Pace Micro Technology boosted its position in the set-top box market by acquiring the operations of Royal Philips Electronics, Pace announced Dec. 19. Philips supplies of set-top boxes to satellite as well as cable, terrestrial and IPTV operators.
    The proposed transaction values the business at nearly 95 million euros ($136.8 million).  Pace will issue 68 million new shares to Philips upon completion of the deal and up to a further 1.9 million shares after completion as well as 5 million euros ($7.2 million) in cash three years after the deal is closed.
    “Based on 2006 performance, this deal will create a company with pro forma revenues of over $1 billion, producing approximately 8.5 million set top boxes a year,” Neil Gaydon, Pace’s CEO, said in a statement.