Broadcom to Acquire Digital TV Business from AMD
Broadcom will acquire AMDs digital TV (DTV) business.
The acquisition of AMDs DTV business is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, to offer a complete product line that covers 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 also is intended to expand Broadcoms existing tier one customer base, which includes the top DTV brands worldwide.
In connection with the transaction, approximately 530 members of AMDs 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. AMDs 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.
"The acquisition of AMDs DTV business, which will become the core of Broadcoms DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment," said Daniel Marotta, Senior Vice President & General Manager of Broadcoms Broadband Communications Group. "We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers."
"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 Chief Executive Officer of AMD. "The sale of our DTV business is a key step in AMDs 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 AMDs DTV assets. A portion of the consideration payable to AMD will be placed into escrow pursuant to the terms of the definitive asset purchase agreement. The board of directors of each company has approved the transaction and shareholder/stockholder approval of the transaction is not required by either company. The closing, which is targeted to occur during Broadcoms fourth quarter ending December 31, 2008, remains subject to customary closing conditions and review by relevant regulatory organizations.
Broadcom will conduct a conference call with analysts and investors today at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time).
In connection with the transaction, approximately 530 members of AMDs 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. AMDs 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.
"The acquisition of AMDs DTV business, which will become the core of Broadcoms DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment," said Daniel Marotta, Senior Vice President & General Manager of Broadcoms Broadband Communications Group. "We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers."
"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 Chief Executive Officer of AMD. "The sale of our DTV business is a key step in AMDs 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 AMDs DTV assets. A portion of the consideration payable to AMD will be placed into escrow pursuant to the terms of the definitive asset purchase agreement. The board of directors of each company has approved the transaction and shareholder/stockholder approval of the transaction is not required by either company. The closing, which is targeted to occur during Broadcoms fourth quarter ending December 31, 2008, remains subject to customary closing conditions and review by relevant regulatory organizations.
Broadcom will conduct a conference call with analysts and investors today at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time).
