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.
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