LONDON – NXP Semiconductor NV, a chip company that has been undergoing a strategic overhaul and downsizing led by CEO Rick Clemmer, has agreed to sell its Sound Solutions business line to Dover Corp. for $855 million.
Sound Solutions, which is headquartered in Vienna, Austria, will become part of Knowles Electronics (Itasca, Illinois) within Dover's Electronic Technologies segment. Under the terms of the deal NXP will become Knowles' exclusive source
for certain high performance mixed signal semiconductors.
Sound Solutions, which can trace a business continuity back to 1929, is a leading manufacturer of dynamic speakers and receivers for cell phones and other consumer electronics. Sound Solutions employs approximately 1,000 people, with manufacturing facilities in Vienna and Beijing, and is anticipated to have annual sales of approximately $330 million in 2010.
"Combining the operations of Sound Solutions and Knowles represents another
major milestone in our strategy of focusing on high performance mixed signal
markets, and it will help to further improve our capital structure," said Rick
Clemmer, president and CEO of NXP, in a statement.
"By combining Sound Solutions with Knowles we create an industry leader in an attractive and growing market," said Bob Livingston, Dover's president and CEO, in a statement.
Dave Van Loan, the President and CEO of Dover Electronic Technologies segment commented, "By adding the products and capabilities of Sound Solutions, Knowles Electronics will now be the leading audio input and output supplier in the mobile handset industry."
The transaction is subject to customary regulatory approvals, and is expected to close around the end of the first quarter of 2011.
NXP is big but it is also old (it is just Philips but changes the name). It just lose the focus and people may not know what to do. In this century, it is too difficult for such a big company to survive as the world is changing so fast. They need to cut out some non-profitable or not-so-profitable business in order to refocus on higher profit section. Saying that, audio system is indeed not high-end enough and the margin is so thin for such a big company. Good to see people try to think about high performance market rather than just huge but dirty and messy market.
@Dave, this is the way of new KKR backed CEO, during last 2 years NXP either s gone to joint venture, or sell off with share owning. Besides thanks to private equity who filled inside of NXP with dept, and would like to get back their money. After sell off mobile unit they had 1,2B. TV and sat. unit to 600K, IPO release and now one more sell to 800K to cover up however +6B dept is huge where no ultimate sales growth is happening around. All admin team trying to assure people that company goes well on HPMS which is simply a fun story. unfortunately big NXP is gone to disappearing from top list, will remain very focused, shrunk company if KKR wont sell off
What is really core business in this age of Apple and Google? Can you have a core business? Think of IBM that has become a consulting technical company. The world is being redesign and it is pity NXP was not up to the task. They have to sell assets. Too bad
I am not proud anymore for for having worked 9 good years for NXP, if all this continues (and there is not anymore the Company for which I I worked), in less tan 1 year it will be completely dismanteled.
One step further in the dismantlement of the former semiconductor division of Philips. No need to be suprised, this is the usual strategy of the private equity firms (like the ones who own NXP) to get money back after a LBO. I don't think NXP's interests (from an industrial point of view) have anything to do in there
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