Dutch electronics giant Philips has agreed to transfer its Lifestyle Entertainment business (audio, video, multimedia and accessories) to Japane’s Funai Electric Co. for €150mn in cash.
The agreement also includes a brand license fee, relating to a license agreement for an initial period of five and a half years, with an optional renewal of five years.
The deal for the Audio, Multimedia and Accessories businesses is expected to close in the second half of 2013. The Video business will transfer in 2017, due to existing intellectual property licensing arrangements.
The Hong Kong-based Lifestyle Entertainment business group is located within Philips Consumer Lifestyle and employs approximately 2,000 people worldwide.