UK-based Pace Micro Technology has acquired French digital television company Xcom Multimedia Communications for an initial consideration of £18.1 million, to be satisfied by the issue of 2,635,418 Pace ordinary shares and £0.8 million in cash.
A statement from the company revealed that further consideration to a maximum of £22 million may be payable in Pace shares (or cash at Pace’s option) dependent on the gross margin performance of Xcom in the period to 31 December 2002.
Xcom, based in Grenoble France, sells digital set-top boxes (gateways), with an international client base in Europe, the Middle East and Asia. For calendar year 2000, Xcom achieved a turnover of FFr163 million.
Late last month, Pace and Sega announced they were developing a set-top box that would incorporate video game capabilities too. The box will be marketed jointly by the two companies to broadcasters and network providers around the world.
The collaboration between the two will provide digital TV customers with on-demand access to hundreds of console quality games with 3D graphics, digital sound and full motion video.
Pace envisage that consumers will access the games in either a ‘pay-per-play’ format or ‘hire’ games for a fixed time period. The consumer will be able to download games to the box, courtesy of a built in 40 Gigabytes drive.