Micronas Buys Infineon's Image, Video IC Operations for $210M

Electronic News, Oct 30, 2000

STRENGTHENING ITSELF IN the audio and video IC business, Micronas Semiconductor Holding AG has bought Munich, Germany-based Infineon Technologies AG's image and video consumer electronics IC operations for about $210 million. The image and video division makes ICs for televisions and video recorder applications, covering five product segments including teletext and data services, scan-rate conversion, picture-in-picture, video recording services, and digital TV.

The business unit had net sales of about $113 million in the fiscal year to September 2000, according to Infineon. "With this acquisition, Micronas has taken a decisive step forward in its video business," said Wolfgang Kalsbach, Micronas Group's chief executive officer. Zurich, Switzerland-based Micronas will gain about 130 former Infineon employees. Infineon said it wants to focus on its core businesses of optical networking, broadband communications and future mobile-communication technologies, according to Ulrich Schumacher, Infineon's president a nd chief executive officer. "We are pleased that Micronas will continue to grow our solid consumer-IC business in the interest of the existing customers," Schumacher said. Subject to regulatory approval, the transaction will be completed with economic effect from Aug. 1, according to the companies. The deal does not include any manufacturing facilities.