STMicroelectronics : STMicroelectronics Announces Sale of the ST-Ericsson
Mobile Connectivity Global Navigation Satellite System (GNSS) Business
Geneva, May 28, 2013 - STMicroelectronics (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.
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:
Group VP, Investor Relations
Tel: +1 602 485 2064
Director, Corporate Media and Public Relations
Tel: +331 5807 77 85
ST-Ericsson announces sale of its Connectivity [GNSS] business
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 18^th 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
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
FOR FURTHER INFORMATION, PLEASE CONTACT:
Ericsson Corporate Communications
Phone: +46 10 719 69 92
Ericsson Investor Relations
Phone: +46 10 719 00 00
STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1602 485 2064
Celine Berthier, Geneva, Switzerland
Phone: +41 22929 5812
STMicroelectronics Media Relations
Nelly Dimey, Paris, France
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
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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: STMicroelectronics via Thomson Reuters ONE
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