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Following the announcement of a Memorandum of Understanding (MOU) between NXP Semiconductors and Thomson on February this year, the two companies have signed a definitive agreement on the transaction to combine their can tuner module operations in a joint venture.



NXP will have a 55 percent holding in the new venture and Thomson the remaining 45 percent. In 2007, these operations posted combined sales of over approximately $250 million (about Euro160 million). The new organization will comprise approximately 4,000 employees, the majority of these being staff from NXP and Thomson manufacturing operations in Indonesia. The CEO of the joint venture will be an NXP designate, Pieter Paumen, and Thomson will assign the CFO, Philippe Nau.



"Moving our can tuner business into a JV reiterates NXP's commitment to ensure our operations are best placed to succeed. The new company will have the scale and leadership position to win in the can tuner market and to develop new RF technologies, while NXP will focus its Home Business Unit on Digital TV, Set Top Box, PC TV and silicon tuner activities," says Christos Lagomichos, EVP and General Manager of NXP's Home Business Unit.



Julian Waldron, CEO of Thomson, comments: "We are pleased to have reached a definitive agreement with NXP on the creation of this joint venture, which we believe will facilitate the successful further development of our can tuner businesses. This represents an initial step towards the simplification of Thomson's business portfolio to allow us to focus on developing our position as worldwide leader in video solutions."



NXP and Thomson expect that the transaction will close in the third quarter of 2008, subject to closing conditions, including regulatory approvals.



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