STMicroelectronics expands presence in digital TV market with acquisition of Genesis Microchip

By Lisa Kerner

Charlotte, N.C., Jan. 25 - STMicroelectronics NV said its completed acquisition of Genesis Microchip Inc. will enhance STMicroelectronics' technological capabilities for the transition to fully digital solutions in the $1.5 billion digital TV market and strengthen the company's product and intellectual property portfolio.

Genesis Microchip is now a wholly owned subsidiary of STMicroelectronics, and its shares no longer trade on the Nasdaq Global Market, a news release stated.

As a result of the merger, Genesis Microchip will be integrated into STMicroelectronics' home entertainment and displays group.

Genesis Microchip chief executive officer Elias Antoun joined STMicroelectronics and will lead STMicroelectronics' television and display initiatives.

STMicroelectronics completed its tender offer for Genesis Microchip on Thursday. Some 34.2 million shares, or 89.1%, of Genesis Microchip common stock were tendered. In addition, STMicroelectronics exercised its right under the merger agreement to purchase newly issued shares of Genesis Microchip priced at $8.65 each in order to control more than 90% of Genesis Microchip's outstanding shares.

As previously reported, STMicroelectronics agreed to acquire Genesis Microchip via a cash tender offer in a deal valued at about $336 million.

Geneva-based STMicroelectronics develops semiconductor solutions for microelectronics applications.

Genesis Microchip, based in Santa Clara, Calif., provides image and video processing systems for flat-panel TVs as well as consumer and PC-display products.

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