The Kudelski Group (SIX: KUD.S), the world leader in digital security, and Neotion, a leading provider of secure solutions for the pay-TV industry, have announced that they have reached an agreement whereby SmarDTV’s Conditional Access Module (CAM) and Set-Top Box businesses are transferred to SmarDTV Global, a newly set up entity affiliated with Neotion.
Upfront cash consideration for the transaction amounts to USD 20 million, subject to customary closing adjustments, with the potential for additional earn-out payments that are primarily based on CAM and set-top box sales volumes in the period up to the end of 2021.
Kudelski retained certain assets, including in particular its buildings in La Ciotat, France and Steeton, United Kindgom, and all patents. The transaction will close by the end of the month.
André Kudelski, Chairman and CEO, stated:”This transfer of assets to a well established player is part of the Kudelski Group’s strategy to focus on core activities in which it has or will reach critical mass and profitability to fund on-going growth initiatives. In this transaction, we are placing a lot of attention on preserving our customers’ interests and ensuring their full satisfaction over time.”
Lionel Boissier, CEO of Neotion, said: “Neotion is strongly committed to ensure the continuity and the further development of both SmarDTV Global’s CAM and set-top box businesses, including the further development of an innovative product portfolio for the benefit of SmarDTV Global’s customers.”
Kudelski’s operating entities, NAGRA and Conax, will continue to manage the commercial relationships with their customers for CAMs and will market and sell SmarDTV Global’s CAMs in their respective markets. Kudelski and Neotion will also work closely together during a transition period to ensure a smooth handover of the relevant business activities.
About the Kudelski Group
The Kudelski Group (SIX: KUD.S) is a world leader in digital security and a provider of end-to-end convergent media solutions to the digital entertainment industry, including services and applications requiring access control and rights management to secure the revenue in digital television, internet, mobile and interactive applications. The Group also offers cybersecurity solutions and services focused on helping companies assess risks and vulnerabilities and protect their data and systems. It also supplies integrated solutions to manage access control of people and vehicles to sites and events. The Kudelski Group is headquartered in Cheseaux-sur-Lausanne, Switzerland and Phoenix (AZ), USA. For more information, please visit www.nagra.com
