Trident Acquires TV, Set-top Box Units of NXP Semiconductors

Authored by Mark Hefflinger on October 5, 2009 - 8:15am.

*A correction has been made to this story.

Santa Clara, Calif. - Trident Microsystems, a maker of chips and associated software for digital media applications like LCD televisions, announced on Monday that it will acquire NXP Semiconductors' television systems and set-top box business lines.

Under the terms, NXP will have about a 60% share in Trident after closing, of which 56% is received as consideration for the businesses it contributes, and 4% is added by buying 6.7 million new shares from Trident for $30 million, which corresponds with a price per share of $4.50.

With the added business, Trident estimates it will see revenue of $500 million in 2009, with 60% attributable to television and 40% to set-top box.

"Through this transaction, Trident will become one of the leading global suppliers with the product portfolio, IP and operational infrastructure required to effectively serve the large, high-growth digital home entertainment market," said Sylvia Summers, president and CEO of Trident.

Correction: This story initially stated that Trident paid $30 million for NXP, instead of $30 million for the shares.

http://www.tridentmicro.com

http://www.nxp.com