Pace Buys Philips STB Biz
Pace and the Philips STB and CS Business each have over 20 years experience in the set-top box market. The combined business will be a global top three set-top box company1 with a strong customer and product portfolio.
The Philips STB and CS Business has long-established relationships with a number of key additional payTV operators in multiple geographies, major IPTV customers and a strong international retail business. As part of this transaction, Pace will be entitled to utilise the Philips brand in retail distribution for an agreed range of products for the next three years.
Commenting on the acquisition, Neil Gaydon, Chief Executive Officer of Pace said:
“Based on 2006 performance, this deal will create a company with pro forma revenues of over US$1.0bn, producing approximately 8.5m set top boxes a year. Pace and the Philips STB and CS Business combined technologies, expertise and customer reach will create a leading centre of excellence in the set-top box industry. There is a strong strategic fit from customer, product, geographic, culture and scale perspectives. We have minimal customer overlap and the combined group will have a significantly enhanced technological position.
“The Acquisition brings capabilities in IPTV, terrestrial, retail and connectivity products, which will extend the strong position we have built through relationships with leading payTV operators. We also believe there is potential for improved efficiencies by utilising the operating model and business structure we have built at Pace over the last two years.”
Pace Micro Technology