Amino to acquire Tilgin's set-top box division
November 20, 2008 - UK set-top box firm Amino has signed a sales and purchase agreement for the acquisition of Swedish firm Tilgin's IPTV set-top box division.
Tilgin's IPTV set-top box division offers a range of H.264 high-definition models within its 'Mood' product line, and the acquisition will also give Amino immediate access to additional middleware solutions, such as Ericsson and Nokia Siemens Networks. The acquisition will also extend the group's customer reach and enhance R&D synergies delivered through the development of common ST Micro-based STBs.
The unit has been divested for an initial consideration of SEK 30mn (US$ 3.6mn) on a debt-free basis, payable in cash upon completion on December 1st. There will also be a capped cash earn-out mechanism offering an additional maximum consideration of SEK 15mn based on sales in 2009. The net result of the transaction is preliminarily expected to be a loss of around SEK 8mn, excluding the earn-out.
“Tilgin IPTV is the perfect acquisition for Amino, delivering an extended product portfolio with exciting leading-edge features as well as valuable middleware partners and wider customer reach,” said Andrew Burke, CEO of Amino. “The market is demanding consolidation coupled with innovation and Amino is ideally placed to deliver this elusive mix as the shape and nature of the IPTV industry evolves.”
Tilgin now plans to focus on the provision of IP residential gateways, and the two companies also reportedly intend to start a sales cooperation involving IP residential gateways.
The Swedish firm's IPTV set-top box division posted net sales of SEK 6.7mn for the third quarter of this year, corresponding to 11% of Tilgin's total sales, and a net loss of SEK 12.9mn.
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