Wednesday, 27 August 2008

AMD’s DTV Business Will Soon Be Broadcom’s Asset

US based mobile phones chipmaker Broadcom and Advanced Micro Devices have announced that the companies have entered into a definitive agreement for Broadcom to acquire AMD’s digital TV (DTV) business.

Broadcom will pay approximately USD 192.8 million in cash in exchange for AMD’s DTV assets. A portion of the consideration payable to AMD will be placed into escrow pursuant to the terms of the definitive asset purchase agreement. The board of directors of each company has approved the transaction and either company does not require shareholder/stockholder approval of the transaction.

“The acquisition of AMD’s DTV business, which will become the core of Broadcom’s DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment,” said Daniel Marotta, Senior Vice President & General Manager of Broadcom’s Broadband Communications Group.

In connection with the transaction, approximately 530 members of AMD’s dedicated DTV team, in addition to certain employees directly supporting this team, located in six primary design centers around the world, will be invited to join Broadcom. AMD’s DTV product line includes all Xilleon integrated DTV processors and complete turnkey reference designs, as well as NXT receiver ICs, the Theater 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling.

The closing, which is expected to occur during Broadcom’s fourth quarter ending December 31, 2008, remains subject to customary closing conditions and review by relevant regulatory organizations.