Broadcom to acquire AMD's digital TV business
The acquisition of AMD's DTV business will enable Broadcom to offer a complete product line that covers all segments of the digital TV market.
Broadcom and AMD have entered into a definitive agreement for Broadcom to acquire AMD's digital TV (DTV) business.
The acquisition of AMD's DTV business is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, to offer a complete product line that covers all segments of the DTV market ranging from low-end value and mid-range quality to high-end interactive platforms and panel processors.
The acquisition also is intended to expand Broadcom's existing tier one customer base, which includes the top DTV brands worldwide.
This deal aims to enhance and strengthen Broadcom's innovative DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business.
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 centres 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 theatre 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling.
"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 and General Manager of Broadcom's Broadband Communications Group.
"We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers".
"AMD is executing a strategic plan to transform the company, becoming leaner and more focused while seeking to create a business model to deliver sustainable profitability", said Dirk Meyer, President and Chief Executive Officer of AMD.
"The sale of our DTV business is a key step in AMD's transformation, helping to strengthen our balance sheet, lower our breakeven point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology".
"Broadcom will be a great fit for our talented DTV employees and the DTV products they have created".
In connection with the acquisition, Broadcom will pay approximately US $192.8 million in cash in exchange for AMD's DTV assets.
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