Thomson, NXP seal can tuner JV

Following the February 14 announcement of a memorandum of understanding, NXP Semiconductors and Thomson they have signed a definitive agreement to combine their can tuner module operations in a joint venture.

NXP will have a 55 percent holding in the new venture and Thomson the remaining 45 percent. In 2007, these operations posted combined sales of over approximately $250 million.

The new organization will comprise approximately 4,000 employees, the majority being staff from both companies' manufacturing operations in Indonesia. The CEO of the joint venture is NXP designate, Pieter Paumen, and Thomson assigned Philippe Nau as chief financial officer.

"Moving our can tuner business into a JV reiterates NXP's commitment to ensure our operations are best placed to succeed. The new company will have the scale and leadership position to win in the can tuner market and to develop new RF technologies, while NXP will focus its home business unit on DTV, STB, PC TV and silicon tuner activities," said Christos Lagomichos, executive VP and general manager of NXP's home business unit.

Julian Waldron, CEO of Thomson, commented, "This represents an initial step towards the simplification of Thomson's business portfolio to allow us to focus on developing our position as worldwide leader in video solutions."

NXP and Thomson expect that the transaction will close in Q3, subject to closing conditions, including regulatory approvals.