Digitaltveurope.com

Technicolor has completed its buyout of Cisco’s set-top box division for US$600 million (€561 million) in a cash and stock agreement.

The deal, which was first agreed in July, sees Technicolor take over Cisco’s customer premises equipment business, Cisco Connected Devices.

At the same time, Technicolor has agreed a strategic agreement with Cisco that will allow both companies to develop and deliver “next generation video and broadband technologies” and cooperate on Internet of Things solutions and services.

Technicolor said that it will immediately start to integrate Cisco’s Connected Devices assets and that the strategic collaboration between Technicolor and Cisco is now “moving into the implementation stage”.

Cisco received US$450 million (€421 million) in cash and 21.4 million newly issued Technicolor shares  – an amount equivalent to US$150 million at the time of the agreement.

As a result, Cisco now holds 5.2% of Technicolor’s share capital and Cisco’s chief strategy officer, Hilton Romanski, has been appointed to Technicolor’s board of directors.

Technicolor said the deal will increase its industrial and technological scale in all major geographies and that its Connected Home division will have an adjusted EBITDA of more than €200 million by the end of 2016.