The $135 million deal, which is subject to Pace shareholder approval and other conditions, would make Pace one of the world’s top-three set-top manufacturers. Once the deal is complete, Philips will have a 23 percent stake in Pace, in exchange for 70 million Pace shares.
Pace CEO Neil Gaydon, in a prepared statement, predicted that the deal would create a company with revenues of more than $1 billion in sales that would produce approximately 8.5 million STBs a year.
“There is a strong strategic fit from customer, product, geographic, culture and scale perspectives,” Gaydon said. “We have minimal customer overlap, and the combined group will have a significantly enhanced technological position.”
Philips’ STB and connectivity business unit has approximately 335 employees who are primarily based in France. The company sells set-tops to cable, satellite, IPTV and terrestrial service providers. As part of the transaction, Pace will be able to use Philips’ brand in retail distribution for the next three years.