Thomson Expands its IPTV, Mobile TV and Digital Terrestrial TV Solutions through Potential Acquisition of Thales Broadcast and Multimedia14 December 2005
Thomson strengthens its network head-end business
PARIS, December 12, 2005 Thomson (Euronext 18453; NYSE: TMS) today announced an agreement to acquire the Thales Broadcast & Multimedia (TBM) business unit. In a related announcement today, Thomson also described a strategic partnership with Thales, the parent company of TBM and a leading international electronics group
(See related press release).
Thales Broadcast & Multimedia provides platforms for IPTV services (TV services over Internet Protocol), video-on-demand, Mobile TV, and designs Digital TV and radio broadcasting systems and equipment.
By combining the TBM activities with Thomson's existing Systems& Equipment offerings, the Group will be offering end-to-end products and services in IPTV, Mobile TV and Digital terrestrial transmission (DTT) markets.
The purchase price for TBM in cash is approximately E130 million, based on a normalized level of working capital requirement and no net financial indebtness. Total TBM sales for the twelve months to June 30, 2005, were E134.9 million, and the unit was profitable. Taking into account the synergies, the purchase will have a neutral impact on core business earnings in the first year and be accretive thereafter. Overall, the business meets Thomson's acquisition criteria.
Together with the announcement earlier this month that Thomson intends to acquire Canopus Co, Ltd, a Japan-based leader in high-definition desktop video-editing software, the transaction announced today completes Thomson's external initiatives linked to its Grass Valley Broadcast & Networks business.
This agreement with Thales supports key elements of the plan, which identifies electronic content distribution and the acceleration of the delivery of IP-based technologies as key growth drivers. The agreement also fits Thomson's strategic objective of broadening its client base. In addition, the expected integration of TBM into Thomson will bring significant synergies in terms of technologies, customers, and operations. TBM's offerings combined with Thomson's Systems and Equipment, along with Thomson's worldwide sales and marketing assets, will create sizeable cross-selling opportunities and foster strong relationships with common media and entertainment customers.
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A complete set of Mobile TV solutions
Through this agreement, Thomson will be able to provide cellular operators with a complete set of Mobile TV solutions, from content creation to deliverybut using terrestrial television technologies that are more suited for video than cellular infrastructures.
A brisk pace on the IPTV market
The acquisition of TBM also puts Thomson at the center of the IPTV market, enabling it to offer everything from the software and distribution infrastructure that deliver live programming and VOD services to the set-top boxes through which users access that content. IPTV services are expected to increase at a brisk pace in the coming years. Today, broadband services are available to more than 100 million households worldwide. Many of the world's telecommunications providers are exploring IPTV as a new revenue opportunity for their existing markets.
TBM also provides data servers and advanced compression schemes for interactive applications and broadcast content regionalization such as ad and logo insertions.
Short-term opportunities of digital terrestrial switchover
In terms of terrestrial transmission systems and technology, TBM enjoys significant market share worldwide. With a broader range of products, Thomson will also be able to address the short-term opportunities created by the switch-off of analog TV in several major countries, which will boost demand for extension of Digital terrestrial transmission (DTT), and associated transmitters, head-end equipment, and set-top-boxes.
The transaction is subject to finalisation.
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Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.
About Thomson Partner To the Media & Entertainment Industries
Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and technology to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA, and Thomson brands. For more information: http://www.thomson.net. +-------------------------+-------------------+--------------------+ |Press Relations | | | +-------------------------+-------------------+--------------------+ |Martine Esquirou | +33 1 41 86 58 51|martine.esquirou@tho| | | |mson.net | +-------------------------+-------------------+--------------------+ | Marie-Vincente Pasdeloup| +33 1 41 86 61 13|Marie-vincente.pasde| | | |loup@thomson.net | +-------------------------+-------------------+--------------------+ |Investor Relations | | | +-------------------------+-------------------+--------------------+ |Séverine Camp | +33 1 41 86 57 23|severine.camp@thomso| | | |n.net | +-------------------------+-------------------+--------------------+ |Marie Boidot | +33 1 41 86 51 00|marie.boidot@thomson| | | |.net | +-------------------------+-------------------+--------------------+ |Laurent Sfaxi | +33 1 41 86 58 83|laurent.sfaxi@thomso| | | |n.net | +-------------------------+-------------------+--------------------+ This information is provided by CompanynewsGroup
SOURCE: THOMSON
Source: marketwire
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