MANHASSET, N.Y. Thomson Multimedia has entered an agreement to acquire the Grass Valley Group, a privately-held provider of digital media equipment, for $172 million in cash.
The acquisition will extend Thomson's portfolio and strengthen its position as a supplier of integrated and networked broadcast solutions.
Grass Valley Group (Nevada City, Calif.) had revenues of approximately $200 million in 2000. The company sells digital broadcast equipment and Internet streaming technology used to create, store and distribute high-quality video content.
Thomson enlarged its broadcast activities earlier this year when it acquired a majority interest in the Philips Professional Broadcast Group. The Grass Valley transaction will reinforce Thomson's access to a professional U.S. customer base.
With the addition of the Grass Valley products, Thomson said its line would now include a complete range of switchers, routers, modular products, storage-area network systems, video servers, and digital news production solutions.
The transaction remains subject to regulatory approvals and is expected to be completed in the first half of 2002. Thomson expects the transaction to be accretive for shareholders in the first full year of operation.