
NXP
Semiconductors will acquire the Broadband Media Processing business of Conexant
System. With this transaction, NXP’s existing set-top box and digital TV operations
will be combined with Conexant’s BMP business. The combined operations will create
a top three player in digital video systems with the scale to establish a strong leadership
position. The deal represents NXP’s fourth acquisition since independence and is the
first for its Home Business Unit.
Conexant’s BMP business, which provides industry-leading solutions for satellite,
cable and IPTV applications, accounted for US $205 million in revenue in 2007. Under
the terms of the deal, NXP will pay Conexant US $110 million in cash up front, and
additional consideration of up to US $35 million based on achievement of certain revenue
milestones over the period from closing through 2009.
Conexant’s strengths in broadcast operator STB solutions are complementary to NXP’s
terrestrial IP and retail STB and Digital TV products. Combined, they will offer the
widest semiconductor portfolio for STB and digital TV applications in the industry,
creating a unique technology source for developing digital video applications: innovative
IC solutions for receiving more digital content in terrestrial, cable, satellite and
IPTV broadcast environments with best in class picture and sound quality, anytime,
anywhere in the home.
When the transaction closes, approximately 700 Conexant employees at locations in
the United States, India, Northern Ireland, Israel and China will join NXP’s Home
Business Unit. The transaction is subject to customary closing conditions and regulatory
approvals, and is expected to close in the next 60 days.
Conexant’s BMP business being acquired by NXP offers a comprehensive suite of digital
STB components and system solutions for worldwide satellite, cable and IP entertainment
broadcasting networks. The company’s product offering includes silicon tuners, demodulators,
MPEG audio and video decoders, and DOCSIS modems. Complete reference designs that
help manufacturers reduce cost and speed time-to-market are also available, bundled
with a range of operating systems, middleware, drivers and development tools.


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