Thakur
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Cisco is exiting the set-top box business. Technicolor has agreed to acquire Cisco’s customer premises equipment (CPE) business for $600 million equivalent in a cash and stock transaction.
The transaction and addition of Cisco’s complementary product portfolio will make Technicolor one of the global leaders in CPE and will immediately increase the company’s industrial and technological scale in all major geographies:
– 15 per cent market share worldwide;
– 60 million devices shipped each year and a global presence with an installed base of 290 million set-top-boxes and 185 million gateways in over 100 countries;
– EUR 3bn of pro-forma revenues in 2014, doubling Technicolor’s revenues in the Connected Home segment;
– Synergies generation in excess of EUR 100 million per annum on a run-rate basis, in particular in the field of supply chain and SG&A;
– Strengthened innovation capabilities with over EUR 250 million of combined annual spending in Research and Innovation.
Simultaneously to the acquisition,
Technicolor and Cisco will enter into a strategic partnership that will allow both companies to develop and deliver next generation video and broadband technologies, with cooperation on Internet of Things (IoT) solutions and services.
Under the terms of the agreement, upon the closing of the transaction, Cisco will receive approximately $450 million in cash and approximately $150 million in newly issued Technicolor shares, subject to certain adjustments provided for in the agreement.
The acquisition should result in Technicolor’s Connected Home segment reaching adjusted EBITDA in excess of $219 million by end-2016 and best-in-class profitability 8-9 per cent adjusted EBITDA margin) by 2017.
The transaction will also translate into double-digit EPS accretion at Group level starting in the first full year after closing.
http://www.televisionpost.com/technology/technicolor-is-acquiring-ciscos-stb-biz-for-600-mn/
The transaction and addition of Cisco’s complementary product portfolio will make Technicolor one of the global leaders in CPE and will immediately increase the company’s industrial and technological scale in all major geographies:
– 15 per cent market share worldwide;
– 60 million devices shipped each year and a global presence with an installed base of 290 million set-top-boxes and 185 million gateways in over 100 countries;
– EUR 3bn of pro-forma revenues in 2014, doubling Technicolor’s revenues in the Connected Home segment;
– Synergies generation in excess of EUR 100 million per annum on a run-rate basis, in particular in the field of supply chain and SG&A;
– Strengthened innovation capabilities with over EUR 250 million of combined annual spending in Research and Innovation.
Simultaneously to the acquisition,
Technicolor and Cisco will enter into a strategic partnership that will allow both companies to develop and deliver next generation video and broadband technologies, with cooperation on Internet of Things (IoT) solutions and services.
Under the terms of the agreement, upon the closing of the transaction, Cisco will receive approximately $450 million in cash and approximately $150 million in newly issued Technicolor shares, subject to certain adjustments provided for in the agreement.
The acquisition should result in Technicolor’s Connected Home segment reaching adjusted EBITDA in excess of $219 million by end-2016 and best-in-class profitability 8-9 per cent adjusted EBITDA margin) by 2017.
The transaction will also translate into double-digit EPS accretion at Group level starting in the first full year after closing.
http://www.televisionpost.com/technology/technicolor-is-acquiring-ciscos-stb-biz-for-600-mn/
