Technicolor has entered into an exclusive agreement with Cisco to acquire its customer premises equipment (CPE) business for €550 million. Under the terms of the agreement, Cisco will receive approximately €413 million in cash and approximately €137 million ($150 million) in newly issued Technicolor shares. Hilton Romanski, Senior Vice President and Chief Strategy Officer of Cisco, will join Technicolor’s Board of Directors.
In addition to the transaction, both companies will also enter into a strategic partnership that will allow both companies to develop and deliver next generation video and broadband technologies with extension to the Internet-of-Things (IoT) solutions and services.
Frederic Rose, CEO of Technicolor
We know that video expertise is essential to the future of creating outstanding network and home infrastructure products and services. Through this acquisition and strategic agreement, Technicolor can immediately bring its unrivalled experience and innovation in video creation, delivery, and display to more customers in more geographies, while strengthening our position as a technology leader.
John Chambers, Chairman and CEO of Cisco
The strategic relevance of video to every consumer, business, city and country around the world is only growing, and the market is moving rapidly. This is the right time and we have the right company in Technicolor to drive the future of the CPE business to deliver what our customers and partners need, today and into the future. At Cisco, we are prioritizing our investments to deliver on our strategy of video in the cloud, and will partner with Technicolor to position the CPE business and employees for future success.
