Digital security firm The Kudelski Group and Neotion, a provider of secure solutions for the pay TV industry, have announced that they have reached an agreement whereby Kudelski subsidiary SmarDTV’s conditional access module (CAM) and set-top-box businesses will be transferred to SmarDTV Global, a newly set up entity affiliated with Neotion, for $20 million.
The potential for additional earn-out payments are primarily based on the new entity’s CAM and set-top box sales volumes between now and 2021. Kudelski will retain certain assets, including its buildings in La Ciotat, France and Steeton, United Kingdom, and all patents. The transaction will close by the end of the month, the companies say.
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.
