STMicroelectronics Expands Display Technology With Genesis Microchip
STMicroelectronics, a System-on-Chip (SoC) technology provider for the digital television and display markets, is acquiring Santa Clara, Calif.-based Genesis Microchip.
With the deal, STMicroelectronics expects to expand its leadership in the $1.5 billion digital TV semiconductor market. Genesis Microchip will enhance STMicroelectronics’ technological capabilities for the transition to fully digital solutions and strengthen its product and intellectual-property portfolio, the companies said.
“STMicroelectronics is a leader in digital consumer technologies, with a strong position in set-top box compression and decompression technologies and ‘front-end’ processing technologies in digital TV. Genesis is a leader in ‘back-end’ image and video processing and digital interconnect technologies,” said Philippe Lambinet, corporate vice president and general manager of STMicroelectronics’ Home Entertainment & Displays Group. “The combined company will have the products, technology, IP and expertise to offer best-in-class integrated DTV processing solutions that our customers are increasingly demanding. We also believe that the Genesis DisplayPort technology brings expanded opportunities to the PC and home entertainment markets.”
The price of Genesis is $336 million, which represents a premium of 60 percent over the company’s closing share price Dec. 10, the day the deal was announced. It’s expected to close in early 2008.
Genesis President and CEO Elias Antoun will join STMicroelectronics and will lead its television and display initiatives, reporting to Lambinet.