Trident Microsystems, Inc. to acquire parts of Micronas’ Consumer division (PR0903)
Zurich, April 1, 2009 - Micronas (SIX Swiss Exchange: MASN) signed an agreement to sell product lines of its Consumer division to Trident Microsystems, Inc. (NASDAQ: TRID), headquartered in Santa Clara, California, USA.
“Trident Microsystems is an established player in the consumer electronic semiconductor market. The planned acquisition of parts of Micronas’ Consumer division will strengthen its position in what is a highly competitive market,” explains Dr. Wolfgang Kalsbach, CEO of Micronas.
As a consequence of the announced closing of the Consumer division, Micronas has been looking for potential buyers that would retain employees and continue with parts of the business. “We are very satisfied that we found a new owner for the business, who will retain a number of employees in Germany, the Netherlands and our overseas locations,” says Dr. Wolfgang Kalsbach. As part of the transaction approximately 80 employees in Germany and approximately 100 employees outside of Germany including overseas are expected to be transferred to Trident.
Trident plans to acquire the frame-rate-converter, demodulator, and audio product lines from Micronas. The frame-rate-converter product line – which includes the FRC-Q – enables the latest generation DTVs to display 120Hz or 240Hz video at the highest quality levels. The demodulator product line – which includes DRX-K, DRX-J and DRX-Z – integrates both analog and digital demodulation of television signals into a single device, with pin-compatible versions for Europe (DVB-T, DVB-C), North America (ATSC) and China (DTMB). The audio product line consists of the market-proven MSP, MAP, and UACB product families, which decode and process analog and digital audio signals for televisions, set-top boxes, and PC peripherals.
Micronas will receive 7,000,000 shares of Trident’s common stock as well as warrants to acquire up to 3,000,000 shares of Trident’s common stock. Upon closing of the transaction, Micronas will own approximately 10 percent of Trident, without giving effect to the exercise of the warrants or any other dilutive securities. Through its equity ownership Micronas will participate in the potential equity upside that Trident represents as a stronger and more diversified DTV player.
Credit Suisse acted as exclusive financial advisor to Micronas.
The announced transaction with Trident is expected to close in the quarter ending June 30, 2009, subject to the satisfaction of closing conditions contained in the definitive agreement, including certain regulatory approvals. The closing of the remaining parts of the Consumer division, announced on February 5, 2009, will continue and is expected to be concluded by the end of 2009.
Zurich, April 1, 2009