Done deal

STMicroelectronics and Ericsson have announced the formal closure of the contract that merges Ericsson Mobile Platforms and ST-NXP Wireless into an equal joint venture.

The deal was completed on the terms originally announced on 20 August 2008.

The new company will engage in product research, as well as design, development, and creation of mobile platforms and wireless semiconductors.

Ericsson contributed $1.1bn (£769.7m) net to the joint venture, out of which $0.7bn was paid to ST. Prior to the closing of the transaction, ST exercised its option to buyout NXP’s 20 per cent ownership stake of ST-NXP Wireless.

Alain Dutheil, presently chief executive officer of ST-NXP Wireless and chief operating officer of STMicroelectronics, will lead the joint venture that is already a supplier to four of the industry’s top-five handset manufacturers.

Employing around 8,000 staff – roughly 3,000 from Ericsson and approximately 5,000 from ST – the entity will be headquartered in Geneva.