Cisco to sell its set-top business to Technicolor for €550 million

Yes! You have heard it right. Cisco is planning to sell its set-top business to Technicolor. On closing, Cisco will receive approximately €413 million in cash and approximately €137 million in newly issued Technicolor shares, subject to certain adjustments. The acquisition will give Technicolor an estimated 15% share of the global CPE market, with 60 million devices shipped each year and an installed base of 290 million set-tops and 185 million gateway devices across 100 countries.

Technicolor and Cisco have also entered into a strategic partnership to develop video and broadband technologies, including cooperating on Internet of Things solutions and services. The pair have have signed a long-term patent cross-licensing agreement that covers specific intellectual property and patents from both companies. As part of the strategic agreement Hilton Romanski, senior vice-president and chief strategy officer of Cisco, will join Technicolor’s Board of Directors, after the transaction has closed...Read more