NXP Semiconductors to acquire Conexant’s Broadband Media Processing business

May 1, 2008 – NXP Semiconductors has announced that it is to acquire the Broadband Media Processing (BMP) business of Conexant Systems, and will combine NXP’s existing set-top and digital TV operations with Conexant’s BMP business.

Under the terms of the deal, NXP will pay Conexant US$ 110mn in cash up front, and an additional consideration of up to US$ 35mn based on achievement of certain revenue milestones over the period from closing through to 2009.  NXP expects the combined operations to rank as a top three player in digital video systems.

“NXP continues on the path to reshape the industry by building scale and leadership positions in its portfolio,” said Frans van Houten, CEO of NXP Semiconductors.  “By acquiring Conexant’s BMP activities, our digital TV and STB business will be strengthened in the operator segment of the market, and we position ourselves to compete effectively on a global basis.”

Conexant’s BMP business generated revenues of US$ 205mn in 2007, and offers a range of digital STB components and system solutions for worldwide satellite, cable and IP entertainment broadcasting networks.  The company’s product range includes silicone tuners, demodulators, MPEG audio and video decoders, and DOCSIS modems.

The transaction is expected to close in the next 60 days.