Ericsson and STMicroelectronics Complete Transaction to split up ST-Ericsson
(Thomson Reuters ONE) -
PR N° C2730C
Ericsson and STMicroelectronics Complete Transaction to split up ST-Ericsson
· Formal transfer of relevant parts of ST-Ericsson to the parent
companies has taken place on August 2, 2013
· Close down of the remaining activities of ST-Ericsson has started
Geneva - August 5, 2013 - Ericsson (NASDAQ:ERIC) and STMicroelectronics
(NYSE:STM) today announced the closing of the transaction for the split up of
ST-Ericsson. This follows the announcement the Companies made on March 18, 2013
on the chosen strategic option for the future of the joint venture.
Effective August 2, 2013 Ericsson has taken on the design, development and sales
of the LTE multimode thin modem solutions, including 2G, 3G and 4G
interoperability. In total, approximately 1,800 employees and contractors have
joined Ericsson.
ST has taken on the existing ST-Ericsson products, other than LTE multimode thin
modems, and the GNSS (Global Navigation Satellite System) connectivity solution
sold to a third party, and related business as well as certain assembly and test
facilities. In total, approximately 1,000employees have joined
STMicroelectronics.
As previously communicated, Ericsson and ST have taken the expenses and the
margin of their respective activities since March 2, 2013.
The close down of the remaining parts of ST-Ericsson has started and both
parents are assuming equal funding of the wind-down activities.
Douglas Gilstrap, Senior Vice President and Chief Strategist at Ericsson said:
"We welcome the team of about 1,800 modem-experts that join Ericsson. Ericsson
continues to see great value in the LTE multimode thin modems as they are an
important part of our vision of 50 billion connected devices in a Networked
Society. The market potential is there and Ericsson will now focus on bringing
the best modems to market, and work closely with customers to integrate them
into their products."
Georges Penalver, Executive Vice President, Chief Strategy Officer at ST said:
"We have finalized the agreement fully on track to our plan, with minimized
social impact and lower exit costs than anticipated. We welcome our new
employees as we are adding strong competencies in the areas of embedded
processing, RF, analog and power technologies, as well as in software and
complex system integration, to fuel growth in many of our product areas where we
have significant business opportunities".
As communicated in the second quarter 2013 earnings press release, ST estimates
that its total cash costs net of proceeds from beginning 2013 through the end of
the joint venture, including the covering of ST-Ericsson's ongoing operations
during the transition period and the restructuring costs related to the exit
from the joint venture, will be in the range of approximately $300 million to
$350 million.
Forward-looking information
This Press Release contains statements of future expectations and other forward-
looking statements (within the meaning of Section 27A of the Securities Act of
1933 or Section 21E of the Securities Exchange Act of 1934, each as amended).
These statements are based on management's current views and assumptions, and
are conditioned upon and also involve known and unknown risks and uncertainties
that could cause actual results, performance or events to differ materially from
the forward-looking statements contained in this Press Release. Such risks and
uncertainties are detailed in our filings with the Securities and Exchange
Commission, in particular our Annual Report on Form 20F filed on March 4, 2013.
We do not intend, and do not assume any obligation, to update any forward
looking statements set forth in this Press Release.
About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the
spectrum of sense and power and automotive products and embedded processing
solutions. From energy management and savings to trust and data security, from
healthcare and wellness to smart consumer devices, in the home, car and office,
at work and at play, ST is found everywhere microelectronics make a positive and
innovative contribution to people's life. By getting more from technology to get
more from life, ST stands for life.augmented.
In 2012, the Company's net revenues were $8.49 billion. Further information on
ST can be found at www.st.com
For further information, please contact:
INVESTOR RELATIONS:
Tait Sorensen
Group VP, Investor Relations
Tel: +1 602 485 2064
tait.sorensen(at)st.com
MEDIA RELATIONS:
Nelly Dimey
Director, Corporate Media and Public Relations
Tel: +33 1 58 07 77 85
nelly.dimey(at)st.com
STE splitup transaction completed PR:
http://hugin.info/152740/R/1721078/573127.pdf
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Source: STMicroelectronics via Thomson Reuters ONE
[HUG#1721078]
Unternehmensinformation / Kurzprofil:
Datum: 05.08.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 284588
Anzahl Zeichen: 5887
contact information:
Town:
Geneva
Kategorie:
Business News
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