GENEVA — (Marketwired) — 05/28/13 — (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, today announced that ST-Ericsson, a 50-50 joint venture with Ericsson, has sold the assets and intellectual property rights (IPR) associated with its mobileconnectivity Global Navigation Satellite System (GNSS) business and distributed the press release below.
ST is a global leader in the semiconductor market serving customers across the spectrum of sense and power technologies and multimedia convergence applications. 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.
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Geneva, May 28, 2013. ST-Ericsson, a joint venture of STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), today announced the signature of a definitive agreement to sell the assets and intellectual property rights (IPR) associated with its mobile connectivity Global Navigation Satellite System (GNSS) business to a leading semiconductor company.
The sale of these assets represents another step in the execution of Ericsson-s and ST-s announcement of March 18th 2013. In addition to the assets and IPR associated with this business, a world class team of 130 industry veterans located in Daventry (UK), Bangalore (India) and Singapore are anticipated to join the buyer at closing of the transaction.
The closing of the transaction is subject to regulatory approvals and standard conditions and is expected to be completed in August, 2013. ST-Ericsson estimates the proceeds from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, will reduce the joint venture-s cash needs by approximately $90 million.
“Today-s transaction validates the leading innovation developed by ST-Ericsson in mobile navigation systems and marks a further important step towards the execution of our shareholders- decision to exit from ST-Ericsson” commented Carlo Ferro, President and CEO of ST-Ericsson. “I am pleased that this organization will continue to develop leading-edge technologies and delighted that the team found a new home at a leading player in the semiconductor industry.”
ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC) in February 2009, with headquarters in Geneva, Switzerland.
This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For a detailed description of risk factors see STMicroelectronics- (NYSE: STM) and Ericsson-s (NASDAQ: ERIC) filings with the US Securities and Exchange Commission, particularly each company-s latest published Annual Report on Form 20-F.
ST on STE GNSS business sale:
INVESTOR RELATIONS:
Tait Sorensen
Group VP, Investor Relations
Tel: +1 602 485 2064
MEDIA RELATIONS:
Nelly Dimey
Director, Corporate Media and Public Relations
Tel: +33 1 58 07 77 85
Phone: +46 10 719 69 92
E-mail:
Phone: +46 10 719 00 00
E-mail:
Tait Sorensen
Phoenix AZ, US
Phone: +1 602 485 2064
Celine Berthier
Geneva, Switzerland
Phone: +41 22 929 5812
Email:
Nelly Dimey
Paris, France
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