Conexant Sells Off Pictos

Chipmaker continues its planned divestitures, selling its digital imaging business to ESS for approximately $27M in cash

June 10, 2003

1 Min Read

NEWPORT BEACH, Calif. -- Conexant Systems, Inc. (Nasdaq: CNXT - News), a worldwide leader in semiconductor system solutions for communications applications, today announced that the acquisition of Pictos Technologies, Inc. by ESS Technology has strengthened both Conexant's cash position and its balance sheet. ESS announced yesterday that it acquired Pictos, in which Conexant held an approximately 60 percent equity interest, for $27 million in cash. Pictos Technologies, Inc. was formed in July 2002 when Conexant combined its digital imaging business with Zing Network to create a new, privately held company focused on providing semiconductors and embedded camera software for digital still cameras and mobile imaging devices.

"The Pictos transaction enhances our cash resources and strengthens our balance sheet as Conexant prepares for operation as a company focused on providing semiconductor solutions for the broadband digital home," said Dwight W. Decker, Conexant chairman and chief executive officer. "In addition, and perhaps most importantly, the talented Pictos team and the company's unique digital imaging technology have found a natural home in ESS Technology."

Conexant plans to spin-off Mindspeed Technologies(TM), the company's Internet infrastructure business, on June 27, 2003. When the spin-off is complete, the continuing Conexant will consist of the company's Broadband Communications business segment. At spin-off, Mindspeed shares will be traded on the American Stock Exchange under the ticker symbol MND. Conexant will continue to trade on the Nasdaq exchange under the ticker symbol CNXT.

Conexant Systems Inc.

ESS Technology Inc.

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