, the independent semiconductor company founded by Philips, is to acquire the Broadband Media Processing (BMP) business ofConexant Systems
NXP’s existing set-top box and digital TV operations will be combined with Conexant’s BMP business to create what NXP describes as a ‘top three player’ in digital video systems.
Conexant’s BMP business, which provides solutions for satellite, cable and IPTV applications, accounted for $205m in revenue in 2007.
Under the terms of the deal, NXP will pay Conexant an initial sum of $110m, and up to $35m based on the achievement of certain revenue targets over the period from closing through to 2009.
When the transaction closes, approximately 700 Conexant employees at locations in the
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.