Philips may have divested itself of its set-top business, selling its STB and Connected Solutions divisions to Pace Micro Technology, but it’s still got a vested interest in the sector. As part of the deal, Philips has acquired 64.5 million Pace shares, giving it a 21.6 per cent stake in the company. The deal makes Pace one of the largest players in the world of digital TV reception equipment, and potentially a big winner as the world shifts to digital broadcasting.
Pace will continue to use the Philips brand on a range of products for the next three years.
Neil Gaydon, Chief Executive Officer of Pace, says: “Based on 2006 performance, this deal will create a company with pro forma revenues of over one billion dollars, producing approximately 8.5m set top boxes a year. The Acquisition brings capabilities in IPTV, terrestrial, retail and connectivity products, which will extend the strong position we have built through relationships with leading payTV operators. We also believe there is potential for improved efficiencies by utilising the operating model and business structure we have built at Pace over the last two years.”