Broadcom to Acquire AMD Digital TV
Business
Broadcom Corporation, a semiconductor company for wired and wireless
communications, and AMD have announced that the companies have entered
into a definitive agreement for Broadcom to acquire AMD’s digital TV (DTV)
business. The acquisition is expected to enable Broadcom to scale its DTV
business and to cover all segments of the DTV market ranging from low-end
value and mid-range quality to high-end interactive platforms and panel
processors.
The
acquisition is also intended to expand Broadcom’s existing tier one
customer base, which includes DTV brands worldwide. This deal aims to
enhance and strengthen Broadcom’s DTV system solution offerings while
delivering the scale and focus needed to forge a market-leading DTV
business.
In
connection with the transaction, approximately 530 members of AMD’s
dedicated DTV team, in addition to certain employees directly supporting
this team, located in six primary design centers around the world, will be
invited to join Broadcom.
AMD’s DTV
product line includes all Xilleon integrated DTV processors and complete
turnkey reference designs, as well as NXT receiver ICs, the Theater 300
DTV processor, and a line of panel processors that perform advanced motion
compensation, frame rate conversion, and scaling.
“AMD is
executing a strategic plan to transform the company, becoming leaner and
more focused while seeking to create a business model to deliver
sustainable profitability,” said Dirk Meyer, president and CEO of AMD.
“The sale of our DTV business is a key step in AMD’s transformation,
helping to strengthen our balance sheet, lower our breakeven point, and
hone our focus in order to take full advantage of our position as a leader
in both microprocessors and graphics technology. Broadcom will be a great
fit for our talented DTV employees and the DTV products they have
created.”
In
connection with the acquisition, Broadcom will pay approximately $192.8
million in cash in exchange for AMD’s DTV assets.
The
closing, which is targeted to occur during Broadcom’s fourth quarter
ending December 31, 2008, remains subject to customary closing conditions
and review by relevant regulatory organizations.
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