TECHNICOLOR : TECHNICOLOR COMPLETES ACQUISITION OF CISCO CONNECTED DEVICES DIVISION
November 20 2015 - 1:46AM
Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) has completed the
acquisition announced on 23 July 2015 of Cisco Connected
Devices, the Cisco (NASDAQ: CSCO) customer premises equipment
("CPE") business for $600 million (or €561 million[1]
equivalent) in a stock and cash transaction. In parallel,
Technicolor is entering into a strategic collaboration agreement
with Cisco that will allow both companies to develop and deliver
next generation video and broadband technologies, with cooperation
on Internet of Things ("IoT") solutions and services.
Cisco has received $450 million (€421
million) in cash financed by the successful rights offering that
Technicolor closed on 17 November and new debt raised in
October. Cisco has also received 21,418,140 newly issued
Technicolor shares or an amount equivalent to $150 million at
the time of the agreement. As a result, Cisco holds 5.2% of
Technicolor's share capital, of which 16,795,834 shares are
subject to an 18-month lock-up and 4,622,306 shares to a
12-month lock-up. Hilton Romanski, the Chief Strategy Officer of
Cisco, is appointed to Technicolor's Board of Directors, effective
immediately.
The transaction and addition of Cisco's
complementary product portfolio immediately increases the Company's
industrial and technological scale in all major geographies and
will create the following result for Technicolor's Connected Home
segment:
- An Adjusted EBITDA in excess of €200 million by year end
2016;
- Best-in-class profitability (i.e.8-9% Adjusted EBITDA margin)
by 2017;
- Synergies generation in excess of €100 million per annum
with a run-rate level to be reached by 2018.
The integration of the Cisco Connected Devices
assets is starting immediately and the strategic collaboration
agreement between Technicolor and Cisco is now moving into the
implementation stage.
The transaction has closed in all operating
geographies, with the exception of Brazil where closing remains
subject to local approvals, and Colombia where Cisco Connected
Devices' operations have been carved-out pending a decision by the
antitrust authority.
About Technicolor
Technicolor, a worldwide technology leader in
the media and entertainment sector, is at the forefront of digital
innovation. Our world class research and innovation laboratories
enable us to lead the market in delivering advanced video services
to content creators and distributors. We also benefit from an
extensive intellectual property portfolio focused on imaging and
sound technologies. Our commitment: supporting the delivery of
exciting new experiences for consumers in theaters, homes and
on-the-go.
www.technicolor.com - Follow us: @Technicolor -
linkedin.com/company/technicolor
Technicolor shares are on the NYSE Euronext
Paris exchange (TCH) and traded in the USA on the OTCQX marketplace
(OTCQX: TCLRY).
Media Contact
Sandra Carvalho:
+1 323 208 2624
sandra.carvalho@technicolor.com
Investor Relations
Emilie Megel:
+33 1 41 86 61 48
emilie.megel@technicolor.com
Laurent Sfaxi:
+33 1 41 86 58 83
laurent.sfaxi@technicolor.com
[1] The conversion to euros was done using the €/$ exchange rate
of 1.0687 published by the ECB on 19 November 2015.
PDF Version
http://hugin.info/143597/R/1968285/719257.pdf
HUG#1968285
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Apr 2023 to Apr 2024