ST buys Genesis, boosts DTV presence

December 12, 2007 – STMicroelectronics says it will acquire Genesis Microchip for ~$336M in a move to widen its presence as a provider of system-on-chip (SoC) technologies to the $1.5B digital TV space.

Essentially, the deal combines ST’s compression/decompression technologies and frontend processing technologies in digital TV, with Genesis’ backend image and video processing and digital interconnect capabilities, noted Philippe Lambinet, ST corporate VP and GM of home entertainment & displays, in a statement. “The combined company will have the products, technology, IP and expertise to offer best-in-class integrated DTV processing solutions that our customers are increasingly demanding,” he said, adding that Genesis also opens doors into PC and home entertainment markets.

Genesis president/CEO Elias Antoun echoed that his company’s technology combined with ST’s resources, including silicon design and manufacturing capabilities, will “accelerate the delivery of the next generation of solutions for our digital television, flat-panel display and DisplayPort customer base.”

The proposed transaction would be a cash tender offer for all outstanding Genesis shares priced at $8.65/share (net cash), a 60% premium to Genesis’ share price on Dec. 10 and a 26% premium to the 60-day average. A second step in the merger would convert any remaining shares into the right to receive that same per-share price. The deal is expected to close in 1Q08.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.