Technicolor has completed its acquisition of Cisco’s customer premises equipment business (this includes the set-top box division), in a cash and stock agreement worth $600 million (Technicolor Acquires Cisco’s CPE Business). The companies have also signed a strategic agreement, enabling both to develop and deliver ‘next-generation’ video and broadband technologies.
Technicolor will immediately begin to integrate Cisco’s connected devices assets.
Cisco received $450 million in cash and 21.4 newly-issued Technicolor shares – giving the firm a 5.2% stake in Technicolor. Hilton Romanski, Cisco’s CSO, has also been appointed to Technicolor’s board.
Analyst Comment
Cisco’s STB business had itself subsumed the Scientific Atlanta and NDS STB businesses and, of course, the Arris takeover of Pace is continuing, so consolidation in the STB business continues. (BR)
