Thomson takes Grass Valley

Thomson Multimedia has entered into an agreement to acquire the Grass Valley Group, a privately held digital media company based in Nevada City, CA.

Valued at $172 million to be paid in cash at closing, the transaction remains subject to regulatory approvals. It is expected to be completed in the first half of 2002. After synergies, Thomson expects the transaction to be accretive for its shareholders in the first full year of operation.

The Grass Valley Group develops hardware and software products for creating, storing, manipulating, and distributing high-quality video content. The company had revenues of approximately $200 million in the 2000 calendar year.

Early this year, Thomson enlarged its broadcast activities when it acquired a majority interest in the Philips Professional Broadcast Group.