It's a Wrap
Closure of the "reverse takeover," valued at $124.7 million and announced late last year, elevates Pace to the third-largest supplier of set-tops in the world, behind only Thomson S.A. (NYSE: TMS; Euronext Paris: 18453) and Motorola Inc. (NYSE: MOT). (See Pace Shoots for STB Stardom.)
The acquisition will expand Pace's piece of the global set-top pie and leapfrog it past Cisco Systems Inc. (Nasdaq: CSCO), but it won't provide Pace with much help in the U.S. beyond DirecTV Group Inc. (NYSE: DTV), which gets HD-DVR boxes from Pace and lower-end satellite TV receivers from the Philips division.
Philips flirted with the U.S. cable market early in the decade, selling both set-tops and Docsis cable modems. It eventually bugged out, despite securing a sizable deployment deal with Tele-Communications Inc., which is now part of Comcast Corp. (Nasdaq: CMCSA, CMCSK).
— Jeff Baumgartner, Site Editor, Cable Digital News